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How To Get The Right Business Insurance Cover at a Competitive Price

Posted On - 26/05/2017 07:50:37

90% of businesses are underinsured or uninsured - they won't see their full claims paid out. The very time the money's needed it won't be thereBusiness insurance costs. But you can save if you hop on a price comparison site and get a great deal.

Not necessarily...

90% of businesses are underinsured or uninsured - they won't see their full claims paid out. The very time the money's needed it won't be there.

To help avoid being underinsured and uninsured ShopTalk Rewards partnered with Henderson Insurance Brokers, specialists in the IT trade. So you can get the right cover at a competitive price – how good is that?

Insurance brokers do what websites can't, cheaper

I hopped on a price comparison site to get quotes for business insurance. It was well presented and easy to use. But the reasons for ending up underinsured and uninsured soon became stark.

As I completed the form I was presented with choice after choice and drop-down after drop-down. Questions asking me to classify my business and estimate the cover needed. Choices to "include this cover/don't include this cover" one after the other.

The problem was with every answer I knew the more cover I wanted the more the insurance would cost. So not only was I being asked questions hard to respond to sensibly, I was being asked ones I wasn't qualified to answer.

It's no wonder businesses end up with the wrong cover. It's no wonder they end up underinsured and uninsured.

Cheap insurance might be the most expensive cover you ever buy

I'm not denying business insurance costs. I'm not suggesting you spend on stuff you don't need. But that's the point, if you have to claim you don't just want paying, you need the money.

Make no mistake: being underinsured or uninsured can put you out of business.

Perhaps least understood yet widely experienced is underinsurance. Underinsurance is what happens when the cover you've got is less than you need. To illustrate the problem let's say you limit the insurance on your stock to £10,000 (it did save on the premium) and need to claim £1,000 for theft. The loss adjuster finds your stock should have been insured for £20,000. Your claim is immediately limited to £500. The rest? That's for your pocket. Some saving!

As for being uninsured, that's when you decide you don't need the cover – the likelihood of theft's small after all. Get robbed – no claim! Need I say more

You're buying something you don't understand

There are many examples on this – we'll choose one to illustrate. You could be a shop or work B2B. You buy insurance that classifies you as "computer retail general" or "IT consultant". Question: if you had to install a piece of equipment would you be covered? What do you think?

The answer is it's unlikely. Policies with these business classifications will often include a clause along the lines of "…excluding all work away other than collection and delivery." That means exactly what it says. It means you're only covered for collection and delivery. You pick up a box and hand one back. Do anything else and you've no cover. Your insurance is wrong. You need a broader business description - one that includes a work-away extension.

No, you really are buying something you don't understand

Repair computers? Most of you do. Many of you have built businesses doing it. And whether you're a shop or an IT consultant you'd expect that covered no?

No. Standard cover for a shop or office covers (excluding exceptional items) fixtures, fittings, equipment and stock. In other words it covers the stuff you own and want to protect.

Computer repairs? That's different – the goods belong to the customer, they're not yours. So scratch one, drop one and break it, get burgled and have it stolen, whatever, you've probably got no cover. You need "goods-in-trust" cover.

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