How to save on your Business Insurance in 2020
All too often insurance is brushed away or avoided. We get it, it’s the classic grudge purchase. Unfortunately, this ends up driving businesses to not understand what they are buying, keep the same products for too long and not spend the time shopping around.
We want to put a stop to that. Below are our 4 top tips to make sure you get the best insurance and the best deal saving you money in 2020.
Understand what you are buying
There are so many different types of business insurance and so many different levels of cover. Sometimes it can all be a bit confusing, but it doesn’t have to be that way. In many cases just having a better understanding of the product you are buying gives you much more confidence to negotiate or chase a better deal.
Insurance Expert David Green who runs a Professional Indemnity Insurance business says all too often he finds that SME’s just aren’t comfortable with what they are buying.
“Too often I speak to business owners and they don’t have a good understanding of the products features or benefits. This makes it very hard to understand its value or negotiate a better deal. A good place to start is with the insurance policy. You can nearly always find a copy on the internet with a simple google search. Reading the policy or PDS will begin to give you a better understanding of what the product is about and the features and benefits it provides”
This one is easily done but not done enough. If you find yourself always going back to the same insurer, consider shopping around. It can’t hurt to check.
Financial services like insurance are so accessible thanks to emerging technology and the internet, it is crazy to not have a look around. Depending on the complexity of your business and the insurance you need, there are even off the shelf products available to be bought purely online.
Speak to a broker
If you haven’t already, speak to an insurance broker. Their job is to arrange insurance and find the right product for their customers. You may buy insurance, once or twice a year. They do it every day. Also, insurance brokers generally have a deep understanding of all the products on offer to businesses. They can help you make an informed decision to help protect your business and assets.
The best part is, they don’t get paid if you don’t take out a policy, they have found for you. So, if you aren’t happy with what they have achieved, you won’t be stung with any fee’s or charges.
Understand your own risk
Insurance is designed to protect your businesses risk. If you don’t know what risks your business is exposed to, it’s very hard to make a sound decision when buying insurance. In some more extreme cases, do you even need it at all. The best place to start is to conduct your own business risk assessment.
Firstly, some common business ricks to consider are;
- A natural catastrophe, such as fire, flood or storm damage
- Cybercrime such as a data breach or IT failure
- Negligence claims – especially if you provide advice as a service
- Physical accidents caused by your product of actions
- Theft, fraud or vandalism
Once you have got an understanding of some of the risks your business may face, put them into a simple risk matrix. Firstly, consider the likelihood the event may happen from low to high. Then consider the possible consequences. Anything that may have a high likelihood of occurring and a severe possible consequence should be tackled first. Then, work backwards.
Too often business owners shy away from taking the time to consider the risks their business is exposed to. This is when your business is most at risk. Take the time to understand, comprehend and then protect your business for the future.
Don’t be afraid to take control of your business insurance and understand what you are buying. You have worked hard for the money so make sure the money works as hard as possible for you.