1. Be honest. It may sound the most obvious statement but forgotten or inaccurate information could affect your insurance at a later date. Your motto should be, if in doubt, disclose it. Whether you’ve had a small bump in a supermarket car park or have made a claim against your liability insurance - tell your insurance broker or company up front or when it happens.
2. Use an insurance broker if you can’t spare the time to phone or shop around yourself. An insurance broker will search a large number of leading insurers for you so you could save money as well as time. When deciding which insurance broker to use things to look for are:
- Are they well established?
- Do they have facilities with the leading insurance companies?
- Are their staff experienced and do they understand your industry?
3. Choose your insurance provider carefully. A recent survey conducted by Holden Pearmain, the market research company, showed that 63% of small and medium sized businesses (SME’s) preferred using a local supplier when it came to choosing their insurance provider. And 42% surveyed felt using an insurance broker was the best way to get the best deal. When choosing your insurance provider look for a company that understands your needs and has facilities with leading insurance companies to ensure you get the right cover, at the right price.
4. Make sure you are covered correctly. Insurance can be confusing so if you are unsure of anything, ask your broker or insurance company before taking out a policy. They are the experts so take advantage of their knowledge.
5. Increase your excess. If you’re looking to reduce your premium without sacrificing cover, you could opt for an additional voluntary excess on top of your compulsory excess. By increasing your excess you could reduce your premium.
6. Make sure your premises are secure. Many insurers will only offer cover on certain premises if they are fitted with a certain level of security. Find out the exact type of security your premises has as this could reduce your premium.
7. Consider putting all your insurance policies with the same insurance broker or company. Not only will this make your administration far easier, but you may also qualify for discounts for having more than one policy with them. Certain insurance brokers and companies also offer discounts for recommending them to your friends and family. If in doubt, ask.
8. The cheapest isn’t always the best. As insurance isn’t a "sexy" purchase, many businesses opt for the cheapest is best option. Don’t always assume this is the case. Make sure the policy you buy gives you the level of cover you require. Don’t leave it until you make a claim to find out if the policy meets your needs. Make a list of what you need from an insurance policy and make sure the policy you buy includes it.
9. Don’t forget the additional cover. When buying insurance for your business, remember that there are several types of additional cover that maybe offered to you. Whilst not all of these will be necessary, there are certain types of cover that maybe of real benefit to you. Some examples of these include:
-- Legal Protection
-- Personal Accident
-- Directors & Officers Liability
-- Public & Employers Liability
-- Business Travel
-- Key Person Insurance
10. Don’t worry. Buying insurance for your business can be a minefield with so many insurance providers and insurance policies available. However, there is no need to worry as providing you choose the right insurance provider, they should have the experience and expertise to guide you through your options and make sure you get the best deal.
By Mark Burdett
Published: 10/27/2006
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