Things you didn’t know about small business insurance
Getting the insurance sorted for your small business can be pretty straightforward, jump online, compare quotes and buy the insurance that suits your business. But there are a few things you may not know about small business insurance – which may help you choose your next policy or just get a little more out of your current policy.
Your personal insurance doesn’t cover your business
A key thing to be aware of is that your personal insurance may not cover your business liabilities or property. If you work from home, your home and contents insurance policy might not cover all the liabilities related to your business. As an example most home and contents policies do not cover you for property damage to a client or supplier that may occur at your home. We always say, “if the consequences are too severe to manage on your own, you should insure it.” Getting the right cover for your business if you work from home is a small price to pay even if it is unlikely you will have a million dollar claim.
Cover may be mandatory!
Whilst you can generally choose what sort of cover you want for your business, and how much cover to get, there will be some instances where a certain type and a certain level of cover is mandatory. Sometimes cover is required to belong to an industry organisation or it may be statutory, and sometimes it is a requirement to take up a contract. For example if you are providing professional services for a large corporation or the government, they may require you to have Professional Indemnity cover.
Make sure your policy stays relevant and on the move
It’s wise to review and update your coverage every year. No doubt your business is on the move and changing and so your insurance needs will also be changing and you’ll want to make sure you have a policy that covers your business for now. You may need cover that you didn’t need previously, for example if you have employed more staff, you may need to review your policies to cover the increased risks.
Choosing a lower coverage level could cost you more than you save!
There is often the temptation to undervalue your risks in order to save a little on the premium. A short term gain, which could cost you dearly in the long run. You may end up with a shortfall in cover in the event of a claim.
You can save, save, save!
Whether you are buying your first policy or renewing your current policy, make sure you jump online and compare what’s in the market to ensure that you are getting the best rate for your insurance.
This is general advice only.