Small businesses such as start-ups have been buying business insurance online as many insurance companies are now treating it as a commodity. This doesn’t mean there is something wrong with their policies, yet it’s essential to remember that commercial insurance is a very intricate sector.
These are some common business insurance mistakes that I regularly come across when reviewing the insurances of companies that have bought online:
Not getting the business description quite right
You’ll find that many online quote engines will have a dropdown box containing very generic business descriptions. Take care to ensure the description you choose covers all of your business activities. If you are not specific with your business description you can run into some problems. If you’re a Web Design business, do you offer hosting for examples? Or also offer e-commerce site? If you’re a Marketing Company, do you provide direct mailing services?
Not reading all the terms and conditions
It’s vital to double check that you understand exactly what terms your insurer is applying and that you can follow them. If this isn’t the case, failure to comply with them could lead to a claim being turned down or even the entire policy invalidated.
Buying purely on price
A low price is always a big selling point but when it comes to your business you should get the best deal you can. Consider if the insurer has a good security rating . What about their claims service, what is that like? These are some important considerations that should never go unnoticed.
As your business changes and expands, so must your insurances. It’s vital that your insurance provider is kept aware of any changes in your business such as new products or services on offer, new markets (what are the territorial limits on your policy?), changes in the agreed security at your premises and changes in the company head-count.
My aim is to help your business avoid making costly mistakes when it comes to sorting out commercial insurance. That’s why one of the best ways to avoid making these common mistakes is to use the expert services of an Insurance Adviser like myself, Anthony Paul. I offer a free quote and will devote my best to ensure you get the right cover for your business.