Holly Jones, Marketing Executive at 1st Choice Insurance, a leading independent commercial insurance broker based in the West Midlands, talks you through Small Business Insurance and explains how you can save money on your policy.
This article will outline what small business insurance is, what it covers and why SME’s should make sure they have this protection in place. By the end you will fully understand what this type of policy does and how you can keep your insurance premiums down with some insightful tips.
What is Small Business Insurance and why should you have it?
Small Business Insurance is simply that, insurance to protect your business against loss or damage whether it is against your business or to a third party. Anyone who runs an SME will benefit from having business insurance, you invest a lot of money into your business and it’s operation, so if something goes wrong do you have anything in place to protect your assets? It is your responsibility to make sure you are covered, not to mention that some areas of cover are required by law like Employer’s Liability, for example.
Business insurance is a broad policy that can provide multiple protections for small businesses in one easy to manage place. Common protections available include buildings, contents and equipment cover, fire and theft, public liability, product liability, employer’s liability, loss of income and business interruption, motor vehicle cover and more. While it’s possible to take out individual policies, a small business packaged policy is the best way to ensure a sufficient level of protection under a single umbrella whilst benefiting from lower overall insurance costs.
How to keep your insurance premiums down
Be specific about what your business does, what you need and what risks you face. Do you drive work related vehicles or carry goods of high value? Do you have employees, and do you use expensive equipment? Do you deal with sensitive data? It is a good idea to make a list of these specifics before you make your initial call, as these will be things you will be asked about by your provider or broker.
Review and question all aspects of your policy. Not only should you do this for your own clarity, it is also common for additional and unnecessary cover to be included within your policy, which can of course cost you money. It is always wise to question any elements of the cover that you do not understand, so you can consider for yourself if it is something that your business needs.
Location is something many new business owners do not consider, and how this links with the price of their insurance premiums. For example, more populated areas can carry more risks, like higher crime rates, more road congestion, and then as a result a higher quantity of claims. That is why larger cities like Birmingham and London are high risk and therefore insurance premiums in these locations can be up to 5 times more expensive than in less risky rural areas. Neighbouring towns or even business parks at opposite ends of a town could hold different levels of risk, so think about this before deciding on a location for your business.
Good security features are essential, not just for your own peace of mind but also to help reduce your premiums. You should consider choosing a premises with security elements included already or arranging for things like CCTV, alarm systems and secure gates to be added to the property before you move in. These features can all lower the risk of a claim and will have a positive effect on your premium.
Where to get a Small Business Insurance quote
So, what is the best way to get a cheaper business insurance quote? By comparing the available providers and their policies of course. With any type of insurance, it is important to browse the market to make sure that you are getting the most fitting policy for your requirements at the best possible price. This can be a very time-consuming task, not to mention confusing with all the potential add-on’s you may well need for appropriate cover, and complex jargon to read through. By using an insurance broker, you can rest easy knowing it is their job to advise you on the best policy to go for and which insurer to use for the best price.
You should look out for an experienced independent brokerage, which means that not only will they be knowledgeable, they also aren’t tied to any specific providers or corporations, so you can trust that their advice is unbiased. Find a broker that only deals with ‘A-rated’ insurance companies and check that their firm is regulated by the Financial Conduct Authority, they should have an FCA reference number that you can look up. Another good indication of a trusted broker is whether they are members of an industry body like the ‘British Insurance Brokers’ Association’.
When obtaining a quote for your business insurance if you consider all of the above you should be able to save a significant amount of money on your premium, whilst also feeling safe in the knowledge that you are covered for every eventuality.
For expert advice about your insurance feel free to contact 1st Choice Insurance.
