With insurance readily available online, many businesses take matters into their own hands when selecting what policies to purchase. Here are four common mistakes that business owners frequently make, leading to increased risks and potentially significant uninsured losses for their business.
1. Underinsurance
In order to receive the insurance cover you need, you must provide an accurate estimate for the value of your assets, stock, materials, equipment, machinery, etc. If the worst happens and your building burns down with all your contents inside, you need to have the right declared values, limits and coverage so that your business can get back on its feet again quickly. Accurate estimates are the key to a fast recovery from a disaster.
2. Incorrect business descriptions
If you complete an online quote directly through an Insurer, the drop box options for your business activities can be quite generic. It is important to ensure the one you select accurately covers all your business activities. For example, you may be an Accountant providing a small amount of Mortgage broking. If a claim were to arise this could cause reduced or refused settlement.
3. Focusing on low premiums/ high excess
Searching for the cheapest premium with a high excess might seem like a good idea, but when it is time to make a claim, it can cost you your business. You should always take into consideration the type and level of cover offered in a policy and by each insurer and not focus on a low premium.
4. Not keeping your provider updated
If you buy or sell assets, even change your business address, any of these changes can void your insurance policies, if you don’t inform your provider. To ensure that you always have the cover you need to minimise your business risks, you must inform your provider of changes. If you are not sure which changes they need to know – a quick phone call will clarify the issue for you.
It’s no fun when you make a claim and find that your claim has been voided – simply because you forgot to update your address with your provider.
To decide which type of policies and actions are suitable for your business, talk to one of our insurance specialists today.
