Getting the best value insurance is wise – but it isn’t all about the price. Get what you need and don’t pay for cover that’s unnecessary
by Nathan Richardson
IN the current economic climate it’s becoming more and more important for businesses to ensure they are getting the best price possible, whilst at the same time ensuring they are getting the appropriate level of cover for their business. Whether you are covering your contents, your stock or your premises it is essential that you calculate the correct level of insurance cover to purchase. Always read the policy documents carefully to check the extent of the cover.
What are the pitfalls and what should I watch out for?
• Optional Covers – Some insurers will include some extra cover in the standard policy. Others allow you to choose exactly what cover you require and charge accordingly. Ensure you are not paying for something you don’t require.
• Security endorsements – Most insurers will state that you need to comply with their minimum security endorsements. This can include things like having a certain type of alarm, specific locks on external doors etc. If you are not complying with the security or other endorsements then you may invalidate your policy.
• Material changes – If you take on any extra employees, or increase the amount of stock you store on the premises, you should inform your insurer to ensure you remain adequately covered. They may charge an additional premium for a change but conversely, should you reduce the size of your business the insurer may be prepared to re-quote you at a cheaper price.
But always ensure you do have cover for items of importance to your business. As an example, a typical policy organised through the company I work for, SME Insurance Services, can include:
• Contents insurance – cover for your stock and other contents against loss or damage
• Glass cover – in the event of breakage of internal or external glass
• Goods in transit – cover for accidental loss or damage of goods whilst in transit
• Money – protection against loss of money belonging to your business
• Business interruption – cover for reduced income and increased running costs as a result of an insurable loss
• Employers’ liability – legal liability cover for death or bodily injury to employees whilst working for you
• Public and products liability – providing you with protection for your legal liability to third parties should you injure them or damage their property.
It is essential that you get the correct level of covers that apply to your business. Don’t be afraid to ask your broker questions if you are unsure and be specific about your business. It is important that you match the nature of your business with the insurance you are buying.
If you’d like SME Insurance Services to help with any insurance-related issue just call us on 0844 855 4658.
Nathan Richardson is national affinity manager with specialist company SME Insurance Services.