Small business owners, these commercial insurance mistakes are costing you big time and it’s easy to avoid them. Here’s how…
Commercial insurance management can be a challenging part of owning a business, especially if you have been relying on “one size fits all” insurance solutions that promise a lot, but end up costing your business a fortune and letting you down when you need it most.
At Cornerstone Insurance Brokers, we strive to form and grow business partnerships that far outshine the traditional broker-client relationship. We walk with you on your business journey ensuring that you have the right advice and guidance when making business insurance decisions.
It’s with this ethos that we have compiled a list of the most common commercial insurance mistakes many business owners make, as well as ways to avoid them. If you own a business, regardless of the industry, this article is for you.
Looking at insurance options that benefits the provider and not your business
A truly independent broker will always put your company needs first and won’t try to sell you a policy that isn’t right for you, simply to pocket the commission. Many times, clients are sold policies by insurance providers that are either very expensive or completely wrong for their needs. This is because most insurance providers are limited to offering only their solutions, because they cannot offer a holistic and transparent list of policy options.
However, an independent broker will be able to offer you an array of solutions from various providers to make sure you pick the correct one that meets your business needs. This way you can avoid paying a fortune for something you don’t need. Make sure that you are getting 100% independent insurance advice before deciding on a policy – the health of your business depends on it.
Accepting the first quote you get
The insurance industry is highly competitive, and you should always try and get as many quotes as you can to make sure you are getting the best bang for your buck. Don’t be tempted to accept the first quote you get just “to get it over and done with”. Remember, always make sure that you compare apples with apples by checking the fine print and terms and conditions of each quote to make sure that they offer the same cover and service. Don’t forget to triple check the policy wording, especially the parts that pertain to claims and exclusions.
Under-insuring your assets to save on monthly premiums
This is by far one of the worst things a business owner can do. The whole point of commercial short-term insurance is to provide you with the financial means to replace your assets if they are damaged, stolen, lost etc. If your sum insured is lower than the value of the assets listed on your policy, there really is no point of having short-term insurance. If you intentionally decrease your sums insured and you need to claim, the pay-out won’t be sufficient to cover your losses and you will most likely suffer a huge financial knock.
You try to manage commercial claims yourself
Between endless calls, paperwork, lists of questions and inspection sheets, submitting an insurance claim yourself can be incredibly tedious, not to mention costly for your company. With insurers under more and more financial pressure, every claim is scrutinized to the finest detail and one slip up can result in a claim rejection and a massive reduction in your company’s cashflow.
If you appoint a commercial short-term insurance specialist to manage your commercial short-term insurance policies, claims will be a breeze. A qualified broker will know exactly what to look out for and what to avoid when submitting a claim. They will also act and fight on your behalf if your claim is unreasonably rejected or underpaid.
We hope that with your newly found knowledge about the tricky world of short-term insurance, you should be more empowered to tackle any obstacles you might face. Remember, being educated about the insurance industry is good but having a specialist by your side that does all the work for you, is much better. Get in touch with us today to find out how Cornerstone Insurance Brokers can help you live without the stress and hassle that can come with managing a commercial short-term insurance policy.