Buying insurance is a critical activity. If you don’t get it right, you could be putting your assets at risk. Regardless of whether you are in the market for a business insurance package or personal cover, here are four of the biggest mistakes you should look out for when you’re purchasing any insurance product.
1. Not shopping around
The insurance market is flooded with various options for cover and if you settle for the first policy you find you may not be getting the best deal or the most suitable product. When assessing which package to buy, make sure you have a thorough look at what is available to ensure you know your options. Consider all of your needs, as well as the reputation of the provider before you make a decision. This can be a daunting prospect, which is why the services of a broker will be a big help when weighing up the possibilities.
2. Focusing on price alone
Cost can be a big consideration when making any purchase, particularly for smaller businesses where cashflow can be delicate. For many companies the decision to buy insurance is influenced by an obligation to cover their bases, so it can be tempting to just settle for the cheapest option with the lowest premium. Yet insurance is not one of the business expenses you can afford to skimp on, and focusing solely on price may mean you’re wasting valuable capital on a product that does not service your requirements properly. There are a range of other factors you should weigh up in addition to price, including claims procedures and policy restrictions.
3. Underestimating the value of assets
If you have not properly established what your assets are worth, you may not get the payout you were hoping for when you try to make a claim. Have all your assets valued properly, including your property, furniture, tools and equipment, so you can ensure you have the appropriate policies and levels of coverage. This is especially important for products such as landlords protection insurance.
Don’t attempt to buy your insurance online, the help of a broker is invaluable.
4. Buying own insurance online
The insurance world can be complex and confusing, so this is not one of the business tasks you want to DIY by purchasing a product online. Make sure you are fully aware of the policy, your obligations and your requirements by getting help from an experienced insurance broker. Their advice will not only be invaluable for helping you find the right package, but they often have access to wider options and can put together a more suitable package than you could on your own.
To find out more about how we can help, get in touch with MGA Insurance Brokers.