Whichever type of business you run, you’re going to need some type of insurance to protect both it and you if anything goes wrong. It could be business insurance, public liability insurance, vehicle insurance, contractor’s insurance, or in some cases maybe even a combination of different insurance types.
Choosing the right type of insurance is the first step to protecting your business. Below you’ll discover the top 3 things you need to consider when choosing business insurance in 2016.
- Assess the risks
In order to choose the right insurance for your business, you first need to assess the risks it is exposed to. All businesses have risks, whether it’s to their premises or to the people they employ. If you are open to the public, they are also at risk whenever they visit your premises. You need to make sure every single risk is accounted for. Public liability insurance and employer’s liability insurance are just two types you may need. My Gov has a great guide on how to identify the type of insurance you might need.
- Always choose a reliable insurer
No two insurers are the same. Don’t be lured in by low rates alone. You also need to make sure you’re dealing with an insurer that has a great reputation. Ideally they should have plenty of positive reviews from happy customers such as A-Plan. The last thing your business needs if a problem does arise and you have to make a claim, is problems getting the money you need.
- Understand what the policy doesn’t cover
All too often businesses choose an insurance plan based solely upon what it offers. However, they fail to look at what the policy doesn’t cover. This is because the important information on what isn’t covered is often cleverly disguised in the small print. Nobody wants to spend ages reading through small boring text. However, if you don’t, it could have serious consequences when it comes to making a claim. Things you assumed were covered might actually be excluded. Get to know everything you can about the insurance before you take it out.
Overall choosing the right business insurance should take time as well as careful consideration. If you opt for the wrong type, or simply for the cheapest cover, you could end up really regretting it later on. If you’re not adequately insured, it could cost you your business. Always read the small print and know exactly what you’re getting into.
Of course, if you’re trying to lower business costs, look at the big expenses like operations, human resources or materials purchased. You do not want to go cheap on protection for your business. As you become more successful, it becomes more important to get reliable coverage because risks also increase.
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