The Top 4 Mistakes Small Businesses Make With Their Insurance

You know that business insurance is essential for your small business. But too many small businesses leave it at that. It’s okay – we know that running a small business is demanding. And we know that you have what feels like a million other things to take care of that seem more important than insurance. Unfortunately, that approach can cost your business a lot in the short- and long-term.

To make life easier, we outline the top four mistakes small businesses make with their insurance and how to avoid them.

1) Simply renewing your business insurance each year

Consumers are increasingly shopping around for the best insurance price at home, but do you do the same for your business? Just like with personal insurance, insurance companies rely on small business owners being too busy to switch to a different provider. There are two reasons this is a bad business move:

  • Firstly, your business will almost certainly save money by shopping around. Renewal quotes are notoriously higher than brand new quotes – that’s because the insurance company is banking on you just opting to renew to save some time. Remember, shopping around does not need to take up any of your precious work time. Instead use an independent insurance broker, like Park Insurance, to do the legwork for you.
  • Secondly, things change. To ensure your business has adequate insurance, you should review your cover and adjust accordingly every year. Again, this is where using an insurance broker can help, as they can advise you on.

If there is only one thing you do, make sure you pledge not to take the easy option and just renew this year. Instead, shop around or get an insurance broker to do this for you.

2) Taking the cheapest option

Yes, saving money on insurance will help your profits in the short term. Unfortunately, the most inexpensive options out there may not give you the level of cover you assume. Like most things in life, if it seems too good to be true, it probably isn’t. Always read the small print before you buy or use an insurance broker who can make sure there won’t be any nasty surprises lurking around the corner.

You should carefully consider why you bother to take out insurance in the first place. If something unexpected does happen, insurance is there to help you sail on through, keeping your business functioning. With the right level of cover, you can get a courtesy van so you can keep on working even if you have an accident on the road. You will be able to draw on cash that lets you pay suppliers, even if something stops you from trading for a while. And you can go out and replace ruined stock even if you are the victim of theft, flood, or fire.

3) Opting for a ‘one-size fits all’ general commercial policy

No two businesses are the same. If you opt for a general business insurance policy, it’s likely you’ll end up paying for cover you don’t need. Or even worse, you may not be covered for specific aspects that are essential for your industry.

Look for a business insurance policy that can be tailored to your exact requirements. Think about all the different types of insurance you need. This is likely to include:

  • Liability insurance (public, employee and product)
  • Buildings insurance
  • Contents insurance
  • Equipment insurance
  • Goods-in-transit insurance
  • Business interruption insurance
  • Legal expenses insurance
  • Commercial vehicle insurance

Remember, these are just some of the different types of insurance you may need to consider. For more details on the kind of insurance coverage that your business needs, take a look at insurance specific to your type of work.

Remember, if you buy your different insurance policies all together as a bundle deal, it’s likely you’ll see additional cost-savings. Again, this is something that an insurance broker will be able to help you with.

4) Not taking advantage of the specialist knowledge available

When you run a small business time is precious. Prioritising is essential, and that’s where delegating comes in. When it comes to insurance, you can take advantage of free expert advice if you use an independent insurance broker like Park Insurance. We consider ourselves your partner to help your business to succeed. We know exactly which insurance companies will be the best option for your business. We’ll advise you on the full range of cover available to match your budget. And we can make sure that nothing gets forgotten.

Buying your insurance through Park Insurance gives you more time to focus on the day-to-day running of your business if you do need to make a claim. Tell us what has happened and we’ll do the rest. Your claim will be handled swiftly by our Bristol-based team, and that leaves you to focus on what you do best – running your business.

Get a great deal on business insurance you can trust

Spending a few minutes to get to grips with your business insurance can help your small business to succeed. You can save money in the short-term. And you can protect your business (and all that time and effort you’ve put into it) financially.

Park Insurance has been helping businesses to find the best price insurance for 30 years. We take the effort out of shopping around and use our expertise to find insurance deals for businesses that will effectively mitigate your risks. We’re independent, so we’re not tied to any single insurance company. Instead, we use our knowledge to find insurance cover even for difficult to insure situations. As one of the UK’s largest independent brokers, we hold significant buying power too – so we can negotiate hard on your behalf.

We have an experienced team of advisors specialising in a range of industries, from hair salons and taxi businesses to IT consultants and architects. Our expert teams understand your unique needs and can help you find the right insurance package to support your business’ growth. Call us on 0117 955 6835 or get in touch.