Starting Up
Insurance and Compensation
Pawnbrokers have several options to consider when it comes to insurance. Obviously cover for your premises, the loans and interest you have made and for retail stock are a must, so also is occupiers and employers liability insurance.
Pledged goods as far as the customer is concerned are not usually insured by the pawnbroker and there is no legal obligation for you to do so. However many pawnbrokers choose to employ a compensation scheme that gives cover in the event of damage or loss to the goods whilst in their care. Compensation against the damaged goodwill should the business ever suffer a catastrophic loss, means that aggrieved customers are far more likely to return to the business. Preventing the permanent loss of goodwill is imperative and in recognition of this the NPA teamed up with T.H.March to offer a compensation scheme. You can veiw there website here www.thmarch.co.uk
The Plan is simple, cost-effective and flexible, providing the customer with compensation of up to three times the value of the loan in the case of permanent loss or damage. The cost may be met indirectly by means of a small increase to the rate of interest payable on the loan. No special terms or surveys are required since the plan runs in conjunction with pawnbrokers' existing insurance arrangements.
