Ready to buy business insurance? Before you take the plunge, read on...
If you’re arrived at the point where you’re ready to take out business insurance, you probably would have conducted a fair amount of research on which types of cover you would need. Or perhaps you were contacted by an insurance company that offered suggestions for the types of cover you need...
Before you sign on the dotted line, it’s worth making sure that you’ve covered all the bases. You don’t want to end up under-insured, and you certainly do not want to have any unnecessary insurance overheads. Ideally, you need to make sure that your business insurance policy is tailored around the specific needs of your business.
Examine your areas of risk
Risk areas will differ from business to business, often depending on the nature of that business. Your vulnerability to loss or your liability will be very different if you have a small construction company or a financial brokerage.
So take a close look at where your risks are. They type of insurance you take and the premiums you pay will depend on your risk profile. Discuss this with your insurance broker or directly with an insurance company so that you can emerge with an accurate picture of all the risks that you need to cover with your business insurance policy.
Weigh up all the insurance options
You may have business associates or friends who have recommended a particular insurance company or product that works for their business.
While these companies and their services may seem to fit your needs, it’s still important to shop around and check what other insurance companies have to offer. You may find slightly better policies, perhaps offering lower premiums or a lower excess. They may also be able to offer more value-added services, like roadside assistance for your company vehicles or temporary loan equipment if yours is damaged.
Comparing the various options available from different insurance companies may seem like a lot of legwork, but it can save you money and pay off when you need to claim. If you don’t have the time to do this yourself, consider:
Finding a reputable insurance advisor
Someone who is experienced in the insurance business and up-to-date with all the latest policies and products available can be an invaluable source of assistance and advice. Seek advice from other businesses in the same industry. Set up a meeting and ask this person to assess your risks with you, to ascertain the best insurance options to meet your specific risks and requirements. Once you have your insurance policies in place, don’t forget to…
Regularly review your insurance needs and cover
As your business grows and changes, so will your risk profile and your insurance needs. Make sure to review them regularly – an annual review is a good rule of thumb. You may need additional insurance in new areas of your business, or you may not need as much insurance as before if your risk profile has lowered.
The idea is always to make sure that your insurance policy matches your needs and your risk profile as closely as possible.