- 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
- 90% of businesses are underinsured
Cheap insurance might be the most expensive cover you ever buy Business insurance costs. We are not suggesting you spend on stuff you don’t need. But that’s the point, if you have to claim you don’t just want paying, you need early settlement for the right insured exposures with the right insurer hand selected for your business.
Insurance brokers do what websites can’t and are cheaper We can demonstrate how buying business insurance online can be a flawed strategy. We hopped on a price comparison site to get quotes for business insurance pretending we are a customer. It was well presented and easy to use. But the reasons for ending up underinsured and uninsured soon became stark. As we completed the form we were presented with choice after choice and drop-down after drop-down. Questions asking me to classify my business and estimate the cover needed. Choices to “include this cover/don’t include this cover” one after the other. The problem was with every answer we knew the more cover we wanted the more the insurance would cost. So not only were we being asked questions hard to respond to sensibly, most clients are not qualified to answer! It’s no wonder businesses end up with the wrong cover.
You’re buying something you don’t understand There are many examples on this – we’ll choose one to illustrate. You could be a shop or work B2B. You buy insurance that classifies you as “computer retail general” or “IT consultant”. Question: if you had to install a piece of equipment would you be covered? What do you think? The answer is it’s unlikely. Policies with these business classifications will often include a clause along the lines of “…excluding all work away other than collection and delivery.” That means exactly what it says. It means you’re only covered for collection and delivery. You pick up a box and hand one back. Do anything else and you’ve no cover. Your insurance is wrong. You need a broader business description – one that includes a work-away extension.
Not all Insurance Brokers are created equal They’re not all the same. Some will transact business all in just one call. They complete everything, end-to-end, while you’re on the phone. Now, this may sound like it’s efficient and saving you time. Sound like they’ve got your best interests in mind. Problem is it means they may be force fitting your business with one of the standard policies they offer.
A professional broker will do three things. They’re all important and you should look out for them. First, they will take the time to understand your business and the risks you face; they can’t give professional advice without that. They will come and visit you. Second, they’ll find you the right insurance to cover those risks. While you won’t know this when you buy, their reputation hangs on what happens should you claim. The right insurance will cover your claim and pay out quickly when you do. Third, they’ll do it all for a great price now and in the future. While brokers don’t themselves price the insurance the good ones will strive to give you stable premiums over the years. Why? They don’t just want your business now they want it next, the year after and so on.