Owners of small businesses in the UK are leaving themselves open to potentially crippling losses by not having the right business insurance in place. Surprisingly, 30% of business owners don’t have any form of business insurance at all. And more than half of all small business owners are worried about our growing culture of “blame and claim.”
Clearly times are tough at the moment, and everyone running a business is trying to keep costs to a minimum. But there are certain areas where it doesn’t make sense to cut corners – and your business insurance is one of them. Insurance from Premierlinedirect.co.uk can protect you against a claim – or a loss – that might otherwise put you out of business.
So if you’re running a business – and it doesn’t matter whether you’re self-employed or the business is a limited company – what steps can you take to make sure you have the right cover in place, without breaking the bank? Here are half a dozen pointers:
1. First of all, identify what’s most important to your business – it could be your stock, goods in transit, or something as basic as the cash you hold. Make sure you’re covered for what’s vital to your business – and if you’re worried about “blame and claim” make sure you’re covered for public liability as well.
2. Secondly, choose a reputable insurer – one who’ll react quickly in the event of a claim. If you need to replace a lot of stock you don’t want to be financing that yourself, particularly given the current mood of the clearing banks. Check the contractors insurance from premierlinedirect
3. Be realistic – especially if you’ve invested in new plant or machinery, or you’ve expanded your business. Less than half of business owners have re-valued their company’s assets in the past year – and if your insurance cover doesn’t reflect the full value of your stock or equipment, then you might find your insurance company reluctant to pay out the full amount in the event of a claim.
4. Shop around. If you’ve been with the same insurance company for years and renewed your cover automatically, you might be in for a pleasant surprise. And check the ‘added value’ services as well – some insurance companies will offer some really useful add-ons (a legal helpline, for example) so make sure you check those as well.
5. Read the small print. All insurance companies will impose some restrictions – such as a minimum level of security – and it’s important you know what your obligations are.
Lastly, consider going direct to an insurer, either online or on the phone. They may give you an extra discount if they don’t have to pay a ‘middleman’ – and any money you save adds to your profit at the end of the year!
