Who to buy business insurance from and how to know if you need advice.
Many many people now turn to the internet to buy insurance, this could be for their car, home, holiday or pet but more and more people are also buying their business insurance online. This can often be quick and fairly stress-free, however, the onus then is on the buyer to understand what they are buying and if it is suitable to provide them with the right cover.
Disaster strikes when it comes to making a claim and you find out that you haven't got the cover you thought you had and you're left with a big bill to pay, one that you weren't expecting that can have a severe impact on your cash flow. For example, it is common to think that you have cover for data theft if you insure your computer, this is more often not the case as computer insurance and cyber insurance are two different types of insurance.
If you go direct to an insurer to buy insurance online, be mindful that the sales teams could be non-advised and can only give you information about the policies they sell.
If you are in any doubt as to what cover you need or have a business that needs more specialised cover then you probably need advice, and to get this advice you need to talk to an insurance broker (making sure they can give advice, not all do).
What is the difference between advised and non-advised insurance?
An advised sale include the broker:
explaining why the particular product or provider would be suitable based on the information you give them about your business.
recommending a specific insurance policy(ies) to you that match your needs.
In non-advised sales, the insurer or broker do not make any personal recommendation and it is up to you, the customer to decide if you want to buy the insurance. It is important to say that you will still receive enough information to enable you to make an informed decision as to whether the insurance is right for you.
Why is this important?
This is important because if you are not getting any advice you can find yourself in a position where you need to decide if the insurance is suitable and this can mean reading the policy wording, understanding it and making sure that, in the event of a claim, the policy would pay - this could leave most people wanting to lie down in a dark room for a week. People who enjoy reading insurance policies are rare to find! the alternative is to find an insurance broker who can give you the advice you need.
Do I need advice when buying my business insurance?
This is something to seriously consider, by getting the advice you need from a broker you are tapping into their expertise to assess your needs and find the right insurance for you, usually from a range of insurers and present these back to you with enough information to help you decide on the best cover and explaining to you what it does and doesn't cover. Your broker is also on hand throughout the lifetime of the policy if things change and in the event, you have to make a claim, this can be a very useful extension to your business as these things can take up a lot of time, having someone with experience can be invaluable.
How do I find an insurance broker?
If you need help finding a broker in the UK there is more information here https://www.catherinefrance.com/post/how-to-find-a-good-insurance-broker-in-the-uk
I have also written a post on the benefits of using a broker here https://www.catherinefrance.com/post/3-reasons-you-are-not-using-an-insurance-broker-and-why-you-should-be
Important Note: The information in this post is general and is designed to be a guide to the subject matter, your needs will be very much individual to your business and, as I am sure you can understand, I cannot accommodate that in a blog post. This blog post is for information only and is not providing you with advice. If you would like to book a 1-2-1 call with me to discuss this in more detail, please pop over to firstname.lastname@example.org.