Commercial Insurance is crucial for businesses, whether they’re startups or longstanding companies. No business owner likes to think about suffering any losses as a result of events outside of their control. These events, however, do happen and it’s important that businesses have a safety net to fall back on. This will help the business get back to usual as soon as possible and minimise any potential damages.
However, simply buying an insurance policy should not be the only consideration for businesses; it is also important to spend time making sure that the policy that you are taking out matches your business needs.
When it comes to having the right insurance for your business, there are only so many options. One of the biggest things to consider when you choose commercial business insurance is how to make the most of the policy you purchase.
Dave Manser, Managing Director of Vitamin Creative, an Irish full-service creative agency that caters to eCommerce retailers, provided his thoughts on the matter:
“Commercial insurance is one of the most important investments you can make when starting a new company. It is crucial for small businesses such as ours”.
“Protection for your staff and customers while having the right insurance in place for your company is essential for providing a sense of security and indeed allows us to tender for public works where business insurance is a qualifying factor”.
Here are our 5 tips to consider when you take out commercial insurance:
1. Identify Potential Risks
The first thing you should do when attempting to take out an insurance policy is to highlight the reasons you actually need it for. Imagine the worst-case scenarios for your business and how you can protect yourself from them. Business owners should also attempt to determine what their most valuable assets are, from intellectual property or physical assets such as machinery. What is the key element of your business to help it operate and what would happen if it was taken away?
2. Insure for the Right Amount
This is one of the most important steps when deciding on what type of insurance policy that you will take out, as this will largely determine how much money that your business will receive in the event of a claim. The amount that you are insured for is the maximum amount the insurer will pay out in the event of a claim. For example, if you have a building that would cost €200,00 to rebuild but you take out an insurance policy for €100,000, you will only receive half the amount you are claiming for.
3. Check the Terms and Conditions
Insurance policies may not cover everything, so it is highly important to make sure that your policy does cover the risks that your business may face so that you can rely on the correct payout if a claim is made. There are various requirements that need to be met for your insurance policy to remain valid, so it is worth your time making sure you understand the overall terms of the policy.
4. Speak to a Broker
It is definitely worth your time to have a full conversation with your broker before choosing an insurance policy to ensure all aspects of the business are considered when taking out the correct policy for your business. Your broker may be able to spot additional risks that you might not be aware of and the broker also has access to a wide range of information that might advise you of the best deal for your situation. If you are interested in talking to a broker, contact us here at MDRB for further details.
5. Regularly Review your Commercial Insurance policy
Insurance is something that you need to keep an eye on and not just forget about. As your business changes and grows, so must your insurance policy. If you don’t regularly review your insurance policy to make sure that it still meets your requirements, your business may end up outgrowing your insurance policy, which may leave you with a policy that will not pay out damages for all your losses.
Commercial insurance should not just be treated like a ticking the box exercise for your business. Not taking out the correct insurance policy for your business may potentially leave your business in financial difficulty down the line if a claim has to be made. Business owners must make sure that they have outlined all potential risks and are protected against them to strengthen the company’s future and longevity. Learn more about the commercial insurance services we have on offer here.