Need help with insuring your business? It can be a veritable minefield out there, so we have put together a selection of questions you should answer before you get started.
Do I have the right cover?
The most important part of insuring your business is making sure you have the right cover. You will need to go through the policy conditions tooth and nail to make sure it’s the best fit. Shop around and make your own assessments before considering which insurance company is best for you. Terms and conditions are notoriously tough – and dry – reads. But, at the end of the day, if you don’t know what you are covered for, you can’t be shocked if you get a refusal.
Should I look for specialist insurance?
In certain situations, you will need specialist insurance. Imagine you are in the frozen food distribution business and have a large number of vehicles that do deliveries for you. The obvious thing to look at is that you will need fleet insurance for your vehicles. Insure Fleet have an excellent guide to business vehicle insurance; you can read more over on their website. But you will also need insurance to cover you for storing frozen foods – all it takes is a freezer problem, and your customer’s stock could be wiped out.
How many quotes should I get?
The more quotes you get, the better your choice of options. However, there are less business insurance companies than the regular types that deal with your home or garden, so don’t expect those quotes in the same volume. Always make sure you do back checks for a prospective insurance company to make sure they are reputable. If top name brands use them, it’s a good sign. Small business owners can also ask their families and friends for recommendations. However, bear in mind that not all insurance policies will fit every business.
How do I reduce the risk of my business?
If you have less risk in your company, then your premiums will be cheaper. So, make sure you are making your business as secure as possible. Think about where it is based, what locks you use in your premises and the type of work you do. Get alarms installed, and maybe employ security guards overnight if you stock expensive items. The safer your business, the less it will cost to insure.
How long have I been trading?
New businesses will attract higher premiums, so you may want to probe for a discount if you have been trading for some years. Expect your insurance costs to drop a little each year after your first year of trading.
Should I go for the cheapest?
In general, the more inexpensive your business insurance, the better, but there are exceptions. There is no point in under-insuring your business if you aren’t going to get the full payment should something go wrong. It’s important to go through each prospective policy to see the different levels of cover when comparing prices.
We hope that’s cleared a few things up to you. Getting your insurance cover is vital – so make sure you choose correctly!
