Common Mistakes for Business Insurance, Brokers Can Help You Avoid
Running a business takes a great deal of time and effort, so it can be devastating when a mistake compromises your operation. Making a poor choice of business insurance can be a costly mistake that has the potential to bring down your business. Business insurance provides protection for both you and your business, so it is imperative that you choose the right policy. So, here are some common mistakes for business insurance, brokers can help you to avoid.
Not Considering the Importance of Business Insurance
Brokers are continually seeing business owners making this massive mistake that can have devastating results. Small business owners often believe that since they are small, they don't need business insurance. However, whether your business is large or small, you need adequate protection. Business insurance is crucial to protect you and your business against potential loss. Even a startup can be compromised without adequate coverage, and public liability insurance is mandatory in Australia, so you need to consider insurance a priority in your financial planning.
Allowing Insurance to Lapse
While there are lots of things to manage while running a business, allowing your insurance to lapse is in effect not having insurance at all. If you fail to renew your policy, you could end up paying damages for any accident, lawsuit or other event yourself. Accidents and incidents rarely happen at a convenient time, so you need to ensure that you and your business are protected at all times. You'll regret allowing your policy to lapse should a water pipe burst and damage all your stock or an employee suffer an injury while working on site. Fortunately, a broker can help coordinate your policies so that you will have plenty of warning when a policy is due to expire and with a quick phone call you can get the best deal on your renewal.
Choosing the Wrong Insurance
Assuming that you can obtain the best business insurance from the company covering your home can be a costly mistake. While it may seem like an easy option to call your current insurer, these companies often specialise in home or car insurance. This means that they may not be able to recommend or even access the best business insurance. Brokers do not have this bias and will search the whole business insurance market to get you the best possible deal.
Failing to Update Policy Details
The business landscape is continually changing, and whether you expand your stock, change trucks or move premises, your insurance policy needs to reflect these changes. Business owners are often so busy with day to day activities, they fail to inform insurers about changes to business activities and assets. This means that in the event of a claim, you may not be properly covered and could end up needing to pay part of the claim yourself. Fortunately, using a broker makes updating your policies easier. There is no need to make multiple calls to different companies; one call to your broker will ensure that all of your policies are updated.
If you are looking for business insurance brokers, Perth based GSK Insurance is here to help. We have established business insurance brokers, and we would be delighted to discuss your requirements to help you avoid any insurance mistakes.