Insuring Your Business
ASPECTS TO CONSIDER
Insuring your Business adequately is a priority for any Business owner. One needs to make sure that in the event that a loss is suffered, the Company is able to recover effectively and the business is not at risk.
However, there are a few factors that may be taken into consideration in an attempt to keep costs within the Budget allowed for Insurance cover.
- Take all necessary steps to either prevent or reduce any potential loss. This might be in the form of initially spending more on security, servicing of fire fighting equipment, implementing tight and secure procedures in terms of stock control etc. Insurers may reduce premiums for the client who illustrates serious consideration of protecting the risk they are insuring.
- Make sure that the most important risks are covered correctly and adequately. A fire is likely to affect any business substantially and there would therefore be little point in insuring this section yet not paying attention to the correct sums insured etc. It would be more beneficial to insure the big risks correctly and carry the smaller risks yourselves (ie, insure your building, plant and machinery correctly and possibly cut costs by carrying the risk of a cellular phone yourself).
- Consider the higher rated items – do you want to pay high premiums for these items? We are talking about cellular phones, laptops and iPads etc – the rates to insure these items are considerably higher that the Fire rate used to protect your assets.
- An Insurer may consider reducing a premium should you elect to carry a higher excess structure. Should you feel that your Company is able to carry a higher excess in the event of a loss, consider volunteering to take a higher excess structure and this should result in a lower premium charge.
- Keep in touch with your Broker. It is imperative that your Broker is advised of any and all changes to the risk so that there is a full understanding of what cover is required. Remember that you will never be a nuisance to your Broker when asking questions or requiring clarification on any aspect of your cover – your Broker is there to assist you and make sure that you are covered adequately and appropriately.