Buying insurance cover for your business is hardly the most thrilling part of being an entrepreneur, but it’s certainly one of the more important jobs.
So it’s worth taking time to get the right policy.
To start with, ask why your business needs insurance anyway – that way you are more likely to end up with the kind of cover that’s appropriate.
Here are five key points to consider:
1) Level of Cover
Always pay special attention to the level of cover in a policy. Take time to calculate whether that level of cover is right for your business - the answer can be surprising.
For many businesses, seasonal variations in stock levels are important. What is adequate cover for part of the year may well fall short at peak business periods.
And don’t focus only on insurance cover for the basics, like stock, buildings and liabilities. Consider how your business would be affected if it was temporarily unable to function for reasons beyond your control. Business interruption cover may not seem a priority, but it could prove to be a lifeline.
2) Focus on cost-effectiveness rather than only price.
Price is important, of course; but it’s far more valuable to concentrate on cost-effectiveness and value.
A cheaper policy may well be the right one for you, but check that the cover and any other features, such as the level of the excess, meet your needs.
Malcolm Taring of the Association of British Insurers
3) Check you fulfill legal requirements.
If your company employs even one person, it must by law have Employers’ Liability Insurance (EL). EL insures against damages and legal costs if someone employed by you is injured or killed at work and your business faces a claim.
Bear in mind that a claim can be made against a company many years after an event - one can even be lodged against an insurer after a company ceases to exist.
4) Keep in mind - Insurance can be good for business.
Insurance not only gives you peace of mind, but can also provide the same for your customers. Public Liability Insurance (PL) is not compulsory, but many customers will demand a policy is in place.
They want to know your business is covered in the case of a claim for damage or injury. PL also normally covers legal fees and compensates your business for time lost dealing with claims or attending court.
5) Look for policies that can be tailored to fit your business.
Just as level of cover is unique to your business, so are many other factors. Making sure you have an insurance package that has been carefully designed to meet the needs of your type of business is essential – it can also mean that you don’t end up paying for cover that, ultimately, you probably don’t need!
Instead of trying to work out all the correct elements for yourself, get your information from experts about what’s right for your business – and that means choosing business insurance specialists.
This article was presented by business insurers PremierlineDirect.co.uk. For more information visit their website today.
