With the internet providing quick and easy access to a variety of options, purchasing business insurance can seem like only a couple of clicks away. However, for a start-up business, you need to dig a little deeper to find a comprehensive insurance package that best reflects your business needs. Online options can be standard and therefore offer set limits and coverages, for mass market appeal but may not include all variances available
Here are our top tips for making sure you get the right cover at the right price.
Ensure you pick the right insurer
As a start-up business, it’s critical to pick the right insurance partner. Your Insurer needs to understand how your business works, the unique nature of your products/services/proposition or the specific technical/operational risks you face, so not having an insurance provider with the correct knowledge could mean you end up with unsuitable cover, or paying too much for your policy. Always choose a reputable specialist Insurer with demonstrable experience and respected, knowledgeable underwriters, who can help assess the risks you face and suitably tailor cover accordingly.
The quality of the insurance
The right insurance is the correct combination of the best cover for the best price. We all want value for money but this should not be at the expense of ensuring that you have adequate risk protection. It’s all too easy to be influenced by attractive lower premiums but will you still be happy when you find a claim isn’t fully covered because you skimped on cover to save on price? Don’t be caught out by “false economy”. Always look beyond price and read your policy documents carefully so you know you’re sufficiently protected for the premium being quoted.
Look for a provider who gives you the flexibility
Start-ups grow dynamically, so look for a provider who gives you the flexibility to change your cover as your needs evolve.
Keep all your receipts, invoices and supporting documentation
Starting a business invariably means starting from scratch when it comes to purchasing equipment and items you need to run your business. It is important to understand the value of those items not only to keep track of your spending but also when it comes to insurance. It’s important that you select the correct level of insurance so putting the right value against each item is crucial: especially if your policy will specify limits against different types of items (such as a maximum on portable electronics for example).
Knowing the value of your items is also critical in the unfortunate event of a claim: as is proof of ownership. If you suffer a total loss of an item, such as theft or water damage to a computer for example, Insurers will want to see proof that the item was yours, its age and its value. Keeping all relevant purchase receipts, invoices and user manuals/product specifications are all useful evidence to support your claim and since they provide essential information to your Insurer, will help speed up claim processing and settlement too.
So, you’ve followed our guide to all the things you should do. Now be aware of what NOT to do or to try and avoid.
- Buy the least expensive policy
- Have insufficient contents & equipment cover by miscalculating the value of the items you have
- Skimp on coverage for liability insurances by selecting the lowest liability limits
- Fail to keep your insurance relevant by adjusting coverages to reflect changes in your business as they occur
- Fail to fully disclose all the details of your business and its activities when purchasing cover
- Fail to ensure potential income loss as a result of damage to or loss of your company’s physical assets
- Fail to take insurance from the start of your trading/operation: insurance operates on the basis of an “effective date” with some policies being also based on a retroactive date” (subject to relevant declarations of no known claims/incidents to the Insurer). These reflect the date from which your policy is valid. Problems can arise if, for example, the retroactive/effective date of your policy is March and you face a claim in October relating to work you undertook in February: in this case, your insurance started a month too late and therefore you wouldn’t be covered.