All businesses need insurance. Whatever your product or service, whether you’re a sole trader or you employ staff, whether you work from home or own office premises, insurance is an essential safety net.
As an SME, your bottom line is never far from your mind. Keeping your costs low is key, but so is making sure that you have the right type and level of protection – if something goes wrong and you’re not properly insured, you could find yourself in real financial trouble. That’s why it’s so important to review your business insurance to make sure that you’ve got all the cover you need at the right price.
Here are our top tips for making sure that your business insurance is giving you good value:
- Review your business insurance regularly. If you make any significant changes to what you do or how you do it, your insurance may not provide adequate protection – for example, an expensive new piece of machinery may exceed your contents policy limit, or moving premises may suddenly mean you need public liability insurance. Don’t wait for your renewal notice to assess your insurance needs.
- Only buy the cover you need. Many SMEs buy a package of insurance as it’s usually cheaper than buying a number of different standalone policies. However, some insurers include certain types of cover as standard within their packages – some of which you may not need. If you’re paying for cover that you’ll never use, you may be able to find a cheaper, tailored offering elsewhere.
- Pay in a lump sum. Paying the annual premium in one go is often quite a bit cheaper than paying in monthly instalments, so it’s worth doing if you can. If you can’t afford to do that, though, make sure that you find out how much interest you’ll be paying over the year, and shop around for a cheaper rate if necessary.
- Take your time. If you need to make any changes to your policy, or you need cover for an unusual risk, start talking to your broker or insurer at least three months before the renewal date – don’t leave it until you get your renewal notice, or you may find yourself panic buying. Give yourself plenty of time to find the best deal.
- Use a broker. The role of the broker is to understand your business and your industry, helping you to identify your insurance needs so that you get all the protection you need, and none of the protection you don’t, at the right price. A good broker will save you time and money – something every SME needs more of!
For help finding good value insurance for your business, call 020 8308 4344.