Insured Delights – 6 Common Insurance Mistakes & How Businesses Can Avoid Them
We all know the internet can be a place of inconsistencies.
Increasingly, we’re being forced to confront some of the disadvantages of having this remarkable tool right at our fingertips. For businesses, it opens up a tremendous amount of opportunities, but it can also be a limiting force. This is often the case when it comes to things like choosing insurance policies.
It’s now easier than ever to buy business insurance online. This is encouraging companies to make snap decisions and settle for cover that isn’t entirely suitable. Commercial insurance can be a very complex industry and the consequences of a poor choice are substantial. So, it’s imperative that you don’t rush the process. Do your research. Ask plenty of questions.
This guide to avoiding common insurance pitfalls will help you get it right, the first time.
Going It Alone
If this is your first company, it may be worth consulting with qualified business insurance brokers. They can help you identify key requirements and find a policy that covers all of them, while still being affordable. These people are experts at matching businesses with commercial cover and, with their help, you’re guaranteed a top pick.
Not Asking Questions
The internet isn’t the best way to apply for commercial insurance.
However, if you’re determined to use it, make sure the details are clear. Often, online quote engines have very generic categories. You need to be certain that your specific type of business is being catered to. If in doubt, speak to a representative on the phone. Don’t make assumptions.
Ignoring the T and Cs
They’re rarely very interesting, but you must read the terms and conditions of a policy. If you fail to do this, you can’t be certain a claim will be successful. Some warranties and conditions require businesses to have a certain level of security in place for the policy to be valid. Others stipulate rules for electrical maintenance or only cover certain types of transaction.
Some businesses are chronic under-insurers. They take out policies worth less than the total sum of their assets because they know it’s improbable to lose everything all at once. However, most providers divide the value of the policy by the actual value of the assets. This is then multiplied by the amount claimed to make under-insuring the less economical option.
Focusing On Price
There are some fantastic rates around, but it’s a mistake to make a decision based solely on price alone. Any broker worth their salt will tell you this. You could end up losing money by trying to cut corners and grab a cheap deal. Consider price, certainly, but think about security ratings, claims processes, and a host of other factors as well.
No matter how good your insurance policy may be, it’s still necessary to review it each year. As your business grows and develops, its needs will change. Expansion plans or internal shake-ups may render existing cover unsuitable. Keep a close eye on whether the plan is appropriate for the company headcount, security, markets, products, and services.
The Benefit of Bagging a Broker
While it’s entirely possible to make a good choice without expert help, hiring an insurance broker is the only way to guarantee it. These highly skilled advisors provide a matching service. You tell them what you need and it is their job to make sure you get it.
They take all relevant factors into account, including your industry, age, size, and previous experience with commercial policies. Most importantly, they’ll help you find a suitable policy within your budget. When liaising with a broker, be transparent and give as much information as possible.