Recent research has shown SMEs are leaving themselves wide open
to potential crippling losses and legal claims amounting to over
£3billion, by failing to have the right level of business
insurance. Perhaps more worrying is that nearly a third (30%) don't
have business insurance at all. This is despite the fact that over
half are concerned about the growing 'blame and claim' culture.
SMEs can't afford to take risks and business insurance is one
area a company shouldn't be operating without. Here Chris Little
from Premierline Direct offers advice on how to find the best
protection:
1. Identify what is most important. With cashflow being the
lifeblood of your business, make sure you are protected for what is
most important to you and choose a reputable insurance provider
that can react quickly to a claim so you are not left having to
finance the recovery yourself.
2. Be realistic. Only 40 per cent of SMEs have re-valued their
business' assets in the last 12 months so in the event of making a
claim, they could find they won't receive a payout that will cover
the actual replacement cost. If you've bought new equipment or
expanded in any way that has increased the contents value, tell the
insurance company and don't be afraid to extend cover limits.
3. Shop around. Particularly if you've been with the same
provider for years. It's good to evaluate the cost of all suppliers
as no two providers are the same. Some insurance companies offer
added-value services such as customer benefits programmes where you
can save money on not just the cost of your business insurance but
on many additional costs incurred in your business operations. 4.
Read the small print. Insurance companies will put exclusions and
limitations on policies, for example outlining a minimum standard
of security, so it's important to read this information so you know
what is expected.
5. Consider going direct. Going direct to the insurance
provider, either online or via the telephone, will ensure that you
have a complete picture of exactly what your business is covered
for. Above all though, it can potentially get you a better deal,
saving you money.
