In the insurance world, there are many aspects to compare to ensure you get the right balance and the best deal. Some of the factors to consider when comparing your options include:
Type of insurance
The majority of businesses will require a mix of insurance types. It’s vital to ensure you’re covered in areas that are important to your specific type of business, and that you don’t pay for types of insurance that are unnecessary. In some cases, smaller specialist insurers can offer a more tailored solution so you don’t end up paying for insurance you don’t need.
Who is offering the insurance?
There are large general insurers, some of which are household names, and smaller specialist insurers, who tend to specialise in particular industries or niche areas. These smaller insurers tend to operate mostly online but can often provide the same or better insurance compared to big brand names which have substantial advertising overheads.
Cost of premiums
Naturally, we all want to find the best deal available, but the cheapest form of insurance isn’t necessarily the best for your company. Sometimes purchasing individual forms of insurance can be a more expensive option than a business package, which has several types of insurance bundled into one. The overall business package may cost you slightly more, but it may be cheaper than having multiple smaller insurance policies.
The level of insurance you take out must be proportionate to the size of your business and the risks involved in running it. For example, a café owner may feel that $10 million public liability insurance is sufficient coverage, but the organiser of a large music festival may be looking for coverage ten times this amount. Ensure the maximum payouts are in proportion to the level of cover you require.
Suitability of cover
Each business has different insurance requirements, and what’s important to one enterprise may not be vital to the next. For example, if you run a manufacturing company with a robotic production line, having machinery breakdown insurance may be vital to ensure the long-term viability of your company. However, a hairdresser or clothes retailer may not consider this important at all. Make sure the insurance you choose is suitable to your industry or profession, and don’t pay for insurance you don’t need.