Entrepreneurs embody the pinnacle of ambition, innovation, and fearless risk-taking. While striving to take their businesses sky-high, they navigate through numerous challenges and hazards, be they in the sphere of finance, HR, marketing, or compliance. However, there’s one potential risk that most entrepreneurs perhaps overlook- the risks associated with their daily drive. The circumstantial risks that entrepreneurs face when they drive aren’t just limited to the prospect of an accident or a road rage incident. It delves far deeper.
Factors That May Influence Your Premiums
Many entrepreneurs will be surprised to find out how deeply their car insurance might be impacted by seemingly unrelated factors like their line of work or their address. For example, you might not think that car insurance is affected by postcodes, but it is! Insurance companies assess the risks associated with insuring a vehicle in every postcode. This means, if you live in an area that’s categorised as high risk due to a higher-than-average crime rate or traffic incidents, your car insurance premium would be higher than that of someone who lives in a lower-risk area.
Entrepreneurs Postcode: A Hidden Risk Factor
Although entrepreneurs often have their minds brimming with business ideas and strategies, recognising the importance of a postcode in determining insurance costs seldom crosses their minds. A business hub with high traffic density or a locality prone to thievery can both pose an increase in insurance costs. Hence, your entrepreneurial activities, even when not directly associated with driving, subtly drag you into an arena of hidden risks.
Business Use and Car Insurance
Insurers generally categorise usage of cars into three types: social only, social and commuting, and business use. Entrepreneurs often need to drive their cars for multiple business-related reasons, like meeting clients or delivering goods, thereby falling under ‘business use’. This category tends to attract higher premiums due to the increased time spent on the roads and potentially carrying valuable items or passengers. Entrepreneurs must ensure that their insurance coverage properly reflects their car usage to avoid unnecessary claims disputes.
Risk of Personal Assets
Many entrepreneurs invest a significant chunk of their savings, properties or other personal resources to keep fuelling their business growth. However, should a major accident occur, where the insurance coverage is insufficient to compensate for the damages, entrepreneurs could be risking their personal assets. Insurance companies may seek to recover the costs by going after the car owner’s personal resources, subjecting entrepreneurs to a greater financial vulnerability.
Maximising Safety and Minimising Risks
Whilst entrepreneurs may not be able to dodge all aspects of these risks, there are steps they can take to minimise vulnerability. Choosing a safe, reliable vehicle and equipping it with additional safety features, for example, anti-theft devices, can considerably bring down the insurance premium. Equally important is the habit of safe driving, including avoiding the habit of using mobiles or tablets while driving, not exceeding speed limits and regular maintenance checks on the vehicle.
Moreover, entrepreneurs should thoroughly research and compare the offerings of different insurance providers instead of settling for the first option they come across. A bespoke insurance package that reflects the individual’s exact needs can be more cost-effective and provide better protection.
Entrepreneurs, by their nature, are risk-takers who often need to venture into uncharted territories. However, awareness of these hidden risks and proactive steps to minimise their potential impact can help them stay focused on their growth journey. After all, it’s not just about getting from point A to point B; it’s about ensuring you make the journey safely whilst thinking about the bigger entrepreneurial picture!
