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10 Tips for Selecting the Right Business Insurance

by Altaf Shaikh
10 Tips for Selecting the Right Business Insurance

When starting a new business or taking over an existing company, it’s important to ensure that there is sufficient insurance coverage. Insurance more often than not is one of those things that no one takes too seriously until it’s actually needed. And by that time, if you’ve done the leg work and selected adequate coverage, you’ll be very thankful you made the effort. So, get it done sooner rather than later.

A simple consultation with a business insurance broker will easily get you on the right track. The business insurance Melbourne and other Australian cities have on offer will ensure you are adequately covered for any eventuality. Here are a few tips to consider when choosing an insurance policy or an insurance company.

List Your Questions and Concerns

The first step in selecting an insurance company that can provide you with the insurance your business needs is to list all the questions and concerns you have. To ensure the process is not a run around on your behalf, it makes sense to know exactly what you need. This will point you in the direction you need to start looking.

Look Around, Get Options

It’s important to give yourself options. Take the time to compare policies as opposed to just taking the first or cheapest quote you find. Obtain references from friends or acquaintances about the policies they use and the reasons they use them. Remember, each business’ needs are unique so what works for one company may not be conducive to reaching your goals.

Consider Actual Coverage vs Your Expectation

Don’t settle for a policy that only checks most of your boxes. There will be a policy out there that is 100% suited to your business needs. Keep asking and researching options until you are satisfied your business is covered the way you expect it to be, to minimise risk. Ask questions about assets, employees and potential accidents at work to name a few.

Price vs Quality of the Package

When shopping for insurance, don’t be tempted by the lure of cheaper policies. Choosing cheap policies usually means you are compromising on something else and it’s most likely quality. The objective of insurance is to guarantee your company financial security so skimping on price shouldn’t be an option. Think of the old adage, “You get what you pay for”.

Consider the Ease of Their Process

You don’t want to find yourself in a situation where processing a claim or actually reaching a broker when you need them turns out to be a nightmare. Research the insurance company’s process and establish how easy it will be to interact with them when a query arises.

A few points to research are:

  • Do they have online claim reporting?
  • Is the service available 24/7?
  • How easy is it to make policy changes?
  • How easy are billing queries to resolve?
  • Do they have discounted packages available for the type of insurance you require?

Knowing all aspects of what they can offer will prepare you for the process ahead, so you don’t have the wrong expectations. The objective is to find a company that will not cause you any additional stress.

Assess Reputation, History and Financial Strength

It’s important to do thorough research by visiting websites, reading user reviews and checking social media pages. You don’t want to find yourself in a situation where a policy can’t be paid out due to lack of financial security on the insurance company’s part. Always choose a company that has been around long enough to have the financial strength to cover any anticipated claims.

Ask About the Excess Process

It’s also imperative that you understand the process regarding an insurance excess in the event of a claim. While a high excess could result in lowered premiums, you have to ask yourself if the amount you’re agreeing to will be affordable in the event of a claim.

Review the Fine Print

All policies have certain omissions or aspects that might require further research. Make sure you read the fine print of any policies and documents before putting pen to paper. You don’t want to have a claim and then only discover your policy doesn’t cover your business for that event.

Review Current Insurance Packages

If you have existing insurance packages, review them annually. This will enable you to know if you need to amend or add onto your cover. As your business grows, it may be necessary to upgrade your insurance policies.

Now Consult an Insurance Broker

The best business insurance brokers have the necessary industry expertise to analyse and compare packages and provide you with the best cover for your business. Formulate your own questions and concerns, do the research and then speak to commercial insurance brokers.

Getting insurance for your business shouldn’t be negotiable so don’t put it off any longer. The effort and consideration you put into research will determine the quality of insurance you end up with. Being proactive will ensure you have peace of mind now and the best cover on that day you need it!

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