Insurance 24 August 2015

Should you be thinking about an insurance broker?

As a micro business,  you'll be wanting to save costs wherever possible and a broker could help assess where you can do so on insurance  without compromising on cover
As a micro business, you’ll be wanting to save costs wherever possible and a broker could help assess where you can do so on insurance without compromising on cover
The executive director of BIBA explains why insurance brokers can be viable options for micro businesses, and the importance of seeking a balance between the appropriate level of cover and value for money.

It is probably easy for owners of very small businesses, whether new startups or moreestablished outfits to think that buying their commercial insurance will be just as simple as buying their home or car cover. But, even for the smallest of businesses, the different insurance covers that might be needed to ensure the business is fully protected can amount to a complex portfolio of policies.

According to BIBA research of 500 owners of businesses, those with fewer than 250 employees work over 13 hours more than the usual 35 hour working week, so it’s no wonder that most simply do not have enough time to check whether the insurance theyve bought is right for what their business is or what it does. In fact, 29 per cent of those surveyed had never read their commercial insurance policies at all.

What does this matter to the time-poor small entrepreneur? Ibelieve it makes a great deal of difference. If you simply wait until there is a claim to test the adequacy of your cover and find that what you’ve bought just isnt sufficient then it could spell disaster for your business. We know that business owners are busy people and sorting out insurance can stay right at the bottom of the list for many.

Even more off-putting is having to establish exactly what your insurance needs are. Plenty of insurance providers will package up basic covers into a bundle creating a simple policy appropriate to particular trades or sectors. However, because every business is different, will a simple package suit your specific needs?

Do you know?

  • What cover you are legally required to have motor insurance and, employers? liability
  • What cover is essential to your business, for example, public liability, product liability, goods in transit, property damage, business interruption or others
  • What risks are actually facing your business, such as supplier failure, and how they can be mitigated
  • Which additional covers you should consider for example, professional indemnity, environmental liability or travel insurance?
Of course when selecting your insurance you will want get the right balance between the appropriate level of cover and value for money. That is why you should consider getting advice from an expert. An insurance broker will be able to advise you on your particular business insurance needs and get cover at the right price. They can help you work out what limit of indemnity you need for your liability cover based on what risk of your business operation causing injury or damage to other parties is.


 
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