TOP 7 INSURANCE BUYING MISTAKES
Insurance is hardly exciting, and you can probably list a thousand other ways you’d rather spend your money. However, insurance is an integral part of any business’s financial plan. The risks of not carrying insurance are simply too great.
It’s easy to make mistakes when purchasing insurance coverage – mistakes that result in the loss of your assets or create an unnecessary burden on your monthly expenses.
When you’re assessing how much cover your business needs, you should think about the size of your contracts and the scope of the work undertaken by your business: what level of compensation payments may you face if something goes wrong?
Avoid committing these common mistakes when you shop for insurance;
- Failing to shop around. Companies determine premiums via different equations. Some companies have more faith in certain types of businesses than others. Shop around before you make a decision. It might be the most lucrative time you spend this year. Or you can take the pain of sifting through various insurers’ offers and use a broker, like FSB Insurance Service, where you might get better rates and more importantly the right cover.
- Purchasing an inadequate amount of insurance – or too much.Purchasing too little coverage is a bigger mistake than purchasing too much. However, purchasing too much will result in a larger expense than necessary. Use a broker to help you find the sweet spot and get the right amount of cover for your business.
- Accidentally leaving some of your businesses property uninsured. Many business policies don’t cover common items. It’s important to ensure that all the assets you wish to protect are covered.
- Trying to save money by buying your insurance based on price.There are many factors that you might want to consider when purchasing your cover, not just the cost. You might want to consider your insurer’s excellence in customer service. If they specialize in your type of business, how does the policy wording differ from other insurers? A broker can help you navigate this minefield and get the right policy for you.
- Not updating coverage. Your business will change over time. Your insurance coverage should change over time, too. Companies can also change their pricing structure. A great deal this year might not be as competitive next year. What you needed to be covered for last year might also have changed. So, make sure you let your broker know about any changes as soon as they happen to maximize your chances of getting the right policy for your enterprise.
- Not describing your business well. SMEs often suffer unnecessary losses when making a claim because the businesses activities weren’t properly described when buying the policy. A broker can help you make sure you include all of the essential information an insurer needs to properly cover your business activities. Don’t leave it to chance and find out too late that you didn’t have the cover you thought you did.
- Over-insuring. Sometimes you can end up with policies you don’t need, adding an inappropriate cost to your budget. Just like under-insuring, over-insuring can add needless burdens to your entrepreneurial spirit. Don’t risk adding more running costs to your SME. Talk to a broker today and they can help you discover the right level and type of cover you actually need.
Insurance can be confusing, but it provides security. Most of us don’t have the financial resources to replace our stock, car, or cover loss of earnings when disaster strikes.
Here at FSB Insurance Service we provide these popular policies and much more;
Tradespersons & Professionals Insurance
Directors & Officers Insurance
Professional Indemnity Insurance