Business insurance is an essential consideration for all business owners. No matter the size of your business, the nature of your products or services, or whether you primarily sell business to business or business to customer, the right insurance is important. How do you actually find the best policy for you? These key tips will help.
Understand your legal obligations of business insurance
Before thinking about the coverage you want to have, you should first think about the legal minimum coverage you need. For example, employing an employee, even just one, will require you to have employee liability cover. This will help cover the costs associated with any accidents or damage caused by your employee in the course of working for you, or if they themselves are injured and make a claim against you.
Though this is the base level of cover, when looking for business insurance, UK business owners should also consider their specific market. Other types of cover may be a legal requirement, depending on your business type. Professional indemnity insurance, for example, maybe a requirement of regulatory bodies within your specific industry. Similarly, if your employees are required to drive your company vehicles in the course of their work, you will need to make sure they are covered to do so. This means it’s essential to research your legal obligations prior to beginning your search.
Think about your needs
After determining what your legal requirements are, you can add other types of business insurance, depending on the nature of your business and your perceived likelihood of requiring cover. There are many different types of cover that fall under the broad banner of business insurance.
You may want to take out product liability insurance, for example. This will help protect you in the event you sell a malfunctioning or otherwise unsuitable product to a customer, or a customer happens to be injured while using one of your products.
Public liability insurance is a common addition to business insurance policies and helps cover you in the event that you or an employee of yours causes a member of the public to be involved in an accident or damages a member of the public’s property. You may also want to invest in building property cover, which will help cover the costs associated with repairs for your place of business in the event it is accidentally damaged or damaged by bad weather.
Another common form of business insurance is business interruption insurance. This can help you to keep your business cash flow intact in the event that you’re unable to trade for a period of time through no fault of your own. This can be particularly useful for helping to pay employees or to ensure that rent and utility charges on your property can still be paid, even when you’re not able to stick to regular business hours.
Think about your budget
How much should you pay for the best business insurance? The answer is whatever it takes to get the right coverage for you. Low-cost business insurance doesn’t automatically save you money in the long run if the insurance policy itself doesn’t cover the necessary risks your business faces. Similarly, expensive insurance isn’t always the best choice either, because it too may not have the correct provisions for your needs.
Working out your budget ahead of time is important because it will automatically save you a lot of time searching for business insurance deals. It will give you a clear ballpark of what you can and can’t afford. When budgeting, you should always give yourself a little room if possible, which means not budgeting to the maximum of what you can afford. Remember that, unless you opt for a fixed-premium policy, that premiums can go up as well as down. You should be able to account for any slight rises in your policy premiums, so be sure to work comfortably within your budgetary limits.
It’s also worth making sure before you agree to begin any policy that you’re aware of any further charges that may be incurred, the maximum limit you’re covered too, and what your voluntary excess is. The excess is the amount of money you pay yourself towards any claim. So, if your excess is £1,000, you will pay the first £1,000 on any claim, then the coverage will come into play for anything more than that. If you choose a higher voluntary excess, you may find you can get lower premiums, but remember that you will have to pay that amount towards any claim made.
Why should you get business insurance?
The primary reason for certain kinds of business insurance is because they’re legally required. If you don’t have employee liability cover for your employees, for example, you’ll be breaking the law. Above that, however, there are many benefits to consider for business insurance.
The main benefit of business insurance is that it affords you and your business an extra degree of protection in the event a claim is made against you. There are so many things that are out of your control, ranging from making an innocent mistake to accidentally selling a faulty product. If it results in an accident, injury, or damage to possessions, however, your business will be held responsible.
The fees and costs associated with fighting a claim can be crippling before you even get to the compensation itself. It’s usually more than most businesses can afford to comfortably pay out of pocket. Business insurance cover will help protect you when a claim is made, allowing you to right the wrong that has happened without putting your business’s finances at stake.
Finding the best policy for you
One of the best ways to compare business insurance policies is by using an insurance broker. Arkwright Insurance Brokers can help you find the best business insurance deal for you. By working with a range of trusted partners, we’re able to offer our clients the right insurance cover at affordable prices. Contact Arkwright Insurance Brokers today to start finding the perfect business insurance cover for you and share this article with your contacts to spread the word!