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Common business insurance mistakes and how to avoid them

Running your own business increases your financial and reputational risk, so you need to protect yourself against possible liability and financial loss by insuring both your company and your employees. However, commercial insurance can be a very complex area and finding the right business insurance to cover unforeseeable circumstances can be complicated. So here are just some of the more common mistakes you need to avoid when arranging your business insurance.


Buying insurance based solely on price

Instead of automatically going for the cheapest option available, take the time necessary to research specifically what your policy would and would not cover. It’s so easy to just buy your insurance online with a click of a button but this could have unpleasant consequences when you come to file a claim and see how little your cheap business insurance covers. What appeared to be a bargain could in fact be an expensive mistake. Make sure you are comfortable that every necessary aspect of your business is adequately covered and also thoroughly investigate your chosen insurance companies’ credentials including their claim service, efficiency and ratings.


Poor business description

This problem arises predominantly with online insurance quotes because most businesses are not experts in what information an insurance company really needs in order to supply the correct cover. Options suggested from drop down boxes are generic and vague. So, if you think that your specific business property and all business activities do not fit within one of the options, then they probably don’t, and you will end up under insured causing all sorts of problems and insufficient compensation on a claim.


Over insurance

On the other end of the scale, it can be a costly mistake to take out too much coverage for your business. Evaluate the specifics of your business’ needs in order to only purchase insurance products that you will use to ensure you are getting the most for your money.


Not reading the terms and conditions

Failure to read and comply with the clauses and conditions of your insurance policy can invalidate your claim completely. Make sure you are familiar with the terms your insurer has applied such as the need for a certain level of security at your premises, that the insurances of subcontractors are checked or that the electrical installation is inspected.


Not reviewing your business insurance regularly

As your business grows and evolves so must your insurances. Review regularly so that your insurance company is kept aware of any changes in your business such as new products or services being offered, the acquisition of new assets or moving to a new location. If you don’t adjust your insurance accordingly it will not cover you effectively.


At Exe Insurance we recognise that it can be a time consuming and frustrating exercise to organise your own insurance, especially when the insurance industry is so complicated and complex. A business insurance broker can sit down with you and discuss the needs of your company in detail. They will offer you independent and unbiased guidance, helping you to find the right insurance products with the best insurance company without overpaying or settling for the cheapest option available. If you are in the market for business insurance, act quickly as it will be too late after an accident or injury occurs.

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