Commercial insurance can be really tricky. There are plenty of risks your business faces and naturally you’ve got a few questions. “Which risks should you insure against? Are all commercial insurance policies exactly the same? How do I accurately compare several quotes on an apples with apples basis?”
The last question is the one the insurance market has been debating for 40 years. “How can we make sure our insurance brokers have an “apples with apples” comparison when presenting several commercial insurance quotes to prospective clients?”
So way back in the late eighties everybody in the business insurance game got together and agreed on a default policy called “Multi Mark” MM. Why? Because the industry was a mess. It was flooded with commercial insurance policies nobody could accurately compare.
With Multi Mark a defined set of cover categories was established with an agreed policy wording. That Multi-Mark policy wording has now grown up and we have the 3rd version of the original wording called Multi Mark 111.
Awesome! Finally a standard commercial insurance policy. You could amend the standard cover but the change to the policy had to be via an endorsement ( no changes to the actual policy wording)
Happy insurance brokers and business owners who could now confidently compare “apples with apples”.
Until 2007 this is how commercial insurance was handled in South Africa. Everybody used Multi Mark…
Then the view suddenly changed!
It was driven by more and more fierce competition in the commercial insurance arena. “Isn’t MultiMark anti-competitive? How can you be competitive if everyone has the same commercial insurance policy? It’s contrary to the Competitions Act No 89 of 1998!”
To cut a long story short, certain short term insurers have started moving away from the Multi Mark standard. It isn’t the default benchmark policy wording it originally was.
So what does that mean to you the business owner who has an existing Multi Mark commercial insurance policy?
If anyone knocks on your door and offers you an alternative commercial insurance quote that isn’t Multi Mark you’ve got problems comparing the benefits and more importantly the policy wordings. And with insurance the devil is really in the detail.
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