So your business has suffered an unfortunate incident. But it’s alright because you have insurance, right?
Well, the reality may not be quite so clear cut. And having the right insurance can often mean the difference between whether your business can keep operating or not.
If you’re confused about the number and variety of insurance products available, you’re not the only one. It’s easy to buy insurance online and lots of business owners look for the policy with the lowest premiums. And that’s fair enough; you’ve got a business to run and it’s important to keep costs as low as possible.
But if you’ve bought an insurance policy that doesn’t pay out when disaster strikes, your business will suffer. Many don’t recover.
Buying less complex cover for your car, home, or health insurance online can sometimes be achieved. But when it comes to insuring your business, you’re better off working with an insurance broker who can provide you with sensible risk management advice. Even better, if an insured event happens, they will work on your behalf to maximise the chances of your claim being successful, and they’ll negotiate with your insurer on your behalf to get you the best possible payout.
Here are three reasons you shouldn’t buy business insurance online:
- Under- or over-insurance. If you don’t know everything about all the risks your business might face as well as everything about all the insurance policies available to you, then you may purchase less or more insurance than you need. If it’s less, you face not being covered if an event happens. If it’s more, then you could end up paying too much in premiums. You’re unlikely to have time to thoroughly research all the options because you’re too busy running your business.
- High premiums. Small business owners can’t access the industry knowledge and economies of scale that an insurance broker is privy to. This means you can’t effectively negotiate the best premiums. Often, the best policies are exclusively available through brokers. If you don’t use a broker, you could be missing out.
- Uncertain claims. When an insured event happens, the amount of paperwork involved can be overwhelming. If you accidentally leave out important information, it could mean your claim is denied or you only receive a portion of what you’re entitled to. Your insurance broker will make sure this doesn’t happen. They’ll manage your claim for you so you get the best outcome possible.
This is one of the most valuable parts of working with an insurance broker. In the aftermath of an event, you’ll have enough on your plate without having to worry about what’s happening with your insurance claim. And, because you’ll have a personal relationship with your broker, you know they’ll be on the other end of the phone with an update anytime you need them.
Brokers also tend to have strong relationships with insurance providers, which they can rely on to get maximum results for their clients. If there are any disputes, your broker can handle them with expert knowledge, which is ideal for you if your claim is in a grey area.
Don’t leave your insurance to chance. Work with an insurance broker to make sure your business is safe. To find a local broker in your area, click here.