Many business owners become overwhelmed by the number of business insurance options available. Discover the important things to look for when choosing business insurance…
When operating a business, there are so many things to think about, and insurance is up there as one of the most important. But it can be incredibly complicated to fully understand, and for many, it all seems so hard to make the right choice.
Listed here are important things to consider when choosing business insurance. They’ll help ensure you come out with the right level of cover at the most competitive premium.
Depending on your industry, number of employees and rental agreements, there may be legal obligations to purchase certain kinds of insurance. For instance, workers compensation insurance is compulsory in states and territories and for some businesses professional indemnity insurance is required before registration.
Make sure you investigate these requirements for your particular area of business.
Understand your industry’s risks
There are certain things that should be covered in any business, but because every business is unique, it’s important to understand what specific risks affect yours. This information is critical fin being able to select the insurance policy that covers what’s important.
Get to know what you get for your money
Like all things in life you get what you pay for…
The cheaper the insurance policy the less it covers, the slower the claim process and the more questionable the practices.
It’s important to place extra emphasis on the amount of cover, reputation and quality of the insurance provider than cost alone.
Work with quality insurance providers
As with most of our important purchases in life, you want to choose a trusted company for your business insurance. A good way to determine the reputation and quality of an insurance company is to visit their website and do some research.
- Types of products offered
- Reviews and testimonials. You’ll get a good feel for how they treat their customers. Companies that reply to all positive and negative reviews shows they care about reputation and customer satisfaction
- Claims process
- Customer service
- Vision and values
- Company leadership
- Community involvement
- Financial strength
After researching, you’ll have a good feeling for each company and if any don’t quite feel right, simply avoid them.
Consider using an insurance broker
Insurance brokers live and breath insurance, they fully understand the risks faced by business. You can work with an insurance broker to help make choosing business insurance a much quicker and easier process. Giving you peace of mind...
To find out more about the advantages of using a broker, check out our recent article: Why Businesses Use An Insurance Broker.
Read your policy
We all agree, insurance policies are not the most fascinating of reads. But you should take the time to thoroughly read and understand your insurance policy.
It’s recommended to look out for the following things when reading you policy:
- Get to know the jargon, it’s important. Refer to the “Definitions” section which explains terms used throughout the policy
- Important dates such as policy expiry and renewal dates
- Exactly what you are covered for and exclusions
- Policy limits
- Important conditions, including your responsibilities
It’s not easy to choose the right business insurance for your business, it’s a complex, time consuming task. But by looking out for these things, you’ll be better placed to make the right choice.
Need some more help?
Regional Insurance Brokers can help business owners assess risks that are specific to your business, and will make sure those risks are covered in your policy. Contact our experts.