Saving money on business insurance

Business insurance is a necessary and sometimes legal requirement for anyone operating their own firm, whether it’s a corner shop or a national company.

The exact policy specifications vary depending on the nature of a business, so understanding what type of cover is needed is vital.

Some cover is required by law, like employee liability insurance, while other is optional.

Cheapest is not always best – so take some time to compare quotes and judge their value for money on the cover they offer, not just the price.

Get several quotes

Ask several providers for quotes to compare. Fewer business insurers are on the market than home and car companies, and not all offer the exact cover every business needs, but two or three options should be available.

Business insurers often specialise – so a pub and restaurant insurer may not offer cover to a haulage firm.

Read all the terms and conditions to make sure any comparison is like for like and check how quick and easy the claims process is likely to be.

At this stage, ask other business owners or industry bodies which insurers they recommend, and which they avoid – but beware trade organisations that might earn commission from referrals.

Reduce risk

Keep business insurance costs to a minimum by reducing the risk of having to claim.

This means making sure premises and vehicles are well-maintained and secure while implementing a robust health and safety policy.

Insurers will take several factors into account when determining how much a policy costs, so by doing what you can to prevent accidents could give lower premiums.

If you have yet to locate your business, don’t forget flood risk and high crime postcodes can make the cost of cover at least 20% more expensive.

Build up your low-risk factor

Insurance is likely to cost more for a new business, but over the years, the firm can build up a no claims discount that keeps the cost down.

Value for money

Remember cheap business insurance is not necessarily the best. Beware false economies and be realistic about the level of cover the business needs.

Posted by on May 21 2013. Filed under Uncategorized. You can follow any responses to this entry through the RSS 2.0. Both comments and pings are currently closed.

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