We all know of comparison sites that give you the opportunity to purchase your business insurance within minutes, and that’s great for a quick price check. But the truth is, no two policies are exactly the same; so how do you know if you’re covered?
According to AXA Business Insurance¹:
- 53% of business requiring Employers’ Liability cover failed to buy it
- 43% have no protection against accidents/damage they may be responsible for
- 52% of business who provide advice failed to buy professional indemnity cover
If you are underinsured or have failed to arrange the right cover it could cost you millions. In the majority of cases any gaps can usually be covered for a minimal cost, so it is worth reviewing your cover regularly.
Whilst it’s something you hope you’ll never have to use, there are things you should consider when buying business insurance:
Seek advice from an insurance specialist
Before purchasing your policy, or if you’re concerned about being underinsured or missing a key element of cover, speak with a specialist for your industry to make sure all of your activities are covered. A good broker can make you aware of the important areas that need insuring.
If you have been with your broker and insurance company for a number of years, it is worth making sure they have been doing regular market reviews. This way you can be assured they are obtaining the most competitive rates possible for your company.
A lot of brokers may also have agreements in place with insurers, whereby they offer increased levels of cover at no additional charge.
Review your insurance arrangements
- When purchasing insurance, comparing cover levels with your current policy can highlight any gaps in the cover.
- Make sure you identify what’s excluded. Do any of the exclusions mean you’re not going to be covered for the things your business does regularly?
- If an alternative quote offers a substantial premium saving on your existing policy, make sure you compare it with other policies to ensure the covers offered are like-for-like. Carefully check the terms and conditions to ensure you are able to comply.
Reviewing your insurance regularly can help limit the risk of being underinsured or missing key elements of cover. Check your cover is up to date, and make sure you are adequately protected if the unforeseen does happen.