Commercial Insurance Guide

Starting a new business takes a tremendous amount of organisation and effort, and deciphering complex, jargon-littered commercial insurance policies is usually near the bottom of a new business owner’s list of priorities. Arranging your first commercial insurance, however, doesn’t need to be such a daunting task, in fact you can learn a great deal about the risks facing your business by just talking to your insurer.

Below we have outlined some guidelines about how to get the most efficient insurance package for your business.

Contact insurance companies early on in the set-up process.

By doing this you will gain a good idea of the kind of costs you’ll need to include in your business plan , and also find out ways to reduce your premiums. Being familiar with business risks and insurance is also an important part of business planning, and demonstrates good foresight to lenders or investors should you need to borrow money to kickstart you business

Good insurers can provide valuable information on risks and how to reduce costs, for example:

• Finding a commercial property with an adequate security system already in place
• Think about the physical security standard of locks, windows and roofs
• Written Health and Safety policies
• Designated First Aiders
• Computer Data Backup procedures

Getting the Quote

Your insurer can talk you through the information required for a competitive quote and the covers you require, however it pays to be prepared.

You’ll need to have the following information to hand before putting in that important call:

• Your annual turnover
• How much will you pay in wages each year
• What types of locks and systems safeguard your premises
• If you’re a contractor, what type of premise you will be working on

Before You Buy

The lowest price and the right price are two very different things and, as a business owner, the type of insurance you opt for could have a direct effect on your livelihood, so don’t be afraid to ask questions before you accept a quote. Of course, every business faces different issues, but here are a few questions to get you started:

• How long will the price remain valid - the price may change when the time comes to buy
• What payment options are available – there are 0% interest options out there
• What extras are offered with the policy, such as advisory and support networks
• Will my legal costs be covered in the event of a dispute with a supplier or employee
• Will my revenue be subsidised if I can’t trade – for example, if the premise was flooded
• What value of stock or money is covered in transit
• Can I increase my cover as my business grows
• Will the insurer continue to provide cover if I branch out into other areas
• Will my premiums go down as my experience grows

Shop around, and use the internet before you buy. There are many price comparison sites available, similar to those for motor insurance, and be sure to exploit helpful small business start up guides published on many insurers websites. However, don’t be afraid to pick up the phone if you have unanswered questions. Most importantly, make sure you’re happy with the cover provided, and that you’re confident you’re with a company you can trust so that you can concentrate on running your new business with peace of mind.

IMPORTANT
The information set out in these articles constitutes a set of general guidelines and should not be construed or relied upon as specialist advice. Therefore MORE TH>N BUSINESS accepts no responsibility towards any person relying upon these articles nor any liability whatsoever for the accuracy of data supplied by another party or the consequences of reliance upon it.

MORE TH>N BUSINESS is a trading style of Royal & Sun Alliance Insurance plc (No. 93792). Registered in England and Wales at St. Mark’s Court, Chart Way, Horsham, West Sussex RH12 1XL. Authorised and regulated by the Financial Services Authority