Business insurance is an important part of running your own company. The right policies can protect you and your assets in the case of claims made against you or when you need to make a claim for injury, illness, damage, loss of earnings and more. However, while business insurance is a must-have for anyone looking to protect their assets, it can also be easy to get wrong.
Whether you have the wrong policy, are under or over-insured, or you’ve put the wrong business details accidentally, mistakes could mean that your insurance is voided or that you do not have the right cover. Here, we’ve put together a guide to help you avoid some of the most common mistakes.
Not Having The Right Cover
Some industries require some level of business insurance as a legal requirement, but there are still a surprising number of businesses that haven’t got the right business insurance policies, or any insurance at all beyond Employer’s Liability Insurance. Having business insurance protects your assets against claims made against you or claims you may need to make for public liability, professional indemnity, commercial property, shops, offices and any other insurance products that you might need.
Without insurance, you have no protection in cases where your business activity or property has been affected, or when members of the public may need to make claims against you for injury, illness or property damage. It can feel easy to try and cut costs by bypassing business insurance, but it will likely cost you much more than you’ll save if you’re faced with legal proceedings and claims.
Getting The Cover Level Wrong
If you’re new to the world of insurance, or even to business in general, it can be incredibly easy to under or over-insure your business. Whether due to not knowing how much cover you need, or because you aren’t sure how much your business and assets are worth, getting the level of cover you need can see you either paying out more than you need to or not adequately covered when it matters most. Being overinsured won’t necessarily do your business any harm in terms of coverage levels, however, you are likely to be paying more in premiums. Whether it’s one insurance policy that has too high of a value attached to your assets, or you have multiple insurance policies that may overlap in their coverage, being overinsured could be costing you money.
Underinsurance, on the other hand, could leave you lacking when it comes to cover. Whether you’ve underestimated the coverage you need or the value of your business or property has changed since first taking out business insurance, it can be easy to fall into being underinsured. If you are underinsured and need to make a claim, you might find that your insurer won’t be able to provide the payout you need to cover repairs or loss of funds.
Putting The Wrong Business Description
The details of your business need to be accurate as possible on your insurance policy and one way that companies can fall short is by providing the wrong, or inaccurate business description. With what can often be very limited or generic descriptions to choose from, it can be difficult to select the right option that covers your business’s activity. You should choose the closest possible option, or you can speak to a member of our team and we can help you find the right insurance cover for your particular business operations.
Choosing The Cheapest Policy Without Research
It can be tempting to go for the cheapest insurance quote when finding business insurance. Running a business can be an expensive ordeal and it can be tempting to cut costs, but the cheapest insurance policy doesn’t always provide you with the best cover. Finding the right policy at the best price can be a matter of balance and you should always take the time to read all of the terms and conditions, as well as cover levels and what’s included. Our team are dedicated to finding the best prices for the best policies, ensuring you never pay more than you need to for policies that fully cover your business. We only use approved and trusted insurers, so you can rest assured your business is well protected.
Not Informing Your Insurer Of Changes
Has anything changed in your business? Do you have new assets – cars, buildings, employees? Is your company bringing in more money this year? Are you earning less? Have you changed your address, or the way your business functions? In order to be properly covered by your insurance policy, the details of your business need to be accurate. Without accurate details, your insurance could be invalid or your insurer may be reluctant to pay out the right amount. Let your insurer know when something changes to ensure that you remain insured.
Here at Ashburnham Insurance, we are dedicated to providing our clients with accurate, trustworthy and competitively priced insurance policies for their businesses, properties and land. If your business is in need of a new insurance policy or you need help finding the right cover for you, we are on hand to help. Simply get in touch with Ashburnham Insurance and we will get started putting together the best quotes for you for the policies and insurance coverage that you need.