Buying Your First Business Insurance Policy
Five key things to consider when buying your first business insurance policy...
There are some key milestones in your life. Your first words, starting your first day at school, buying your first car, landing your first job, starting your first business and, most excitingly, taking out your first business insurance policy.
Indeed, one of those things is not like the others.
It’s not necessarily that exciting, but what exactly do you need to know when taking out your first business insurance policy? What are you going to be asked for and how much paperwork will be involved? Here are the basic things you should be expecting to answer…
It should go without saying, but the first things you will be asked for are your name, the name of your business, and the address of your business. Your postcode can actually affect your premium depending on the type of business you run. A jewellery shop situated in a statistically rough urban neighbourhood for example would probably cost a little more to cover than an independent book store in a small rural high street for example.
Type of business
There are specialised packages designed with different types of companies in mind. The needs of a small office are wildly different to those of a pub. Most will start with a core of public liability insurance and employers’ liability and expand out with additional features from there, but what is appropriate for you will all depend on what it is exactly that you do.
Size of business and annual turnover
This will determine not only your premiums, but the appropriate level of cover that you will need for things like public liability. A small company might only really benefit from the minimum amount of £1m, but once you start getting larger you might find you need to scale that up accordingly.
Your total wage roll is important for working out how much employers’ liability you need to take out. Bearing in mind employers’ liability is a legal requirement and not having the right amount can land you with a particularly unpleasant fine, so this piece of information is a sure fire way of getting this right.
Value of contents
A fairly common option for insurance policies will be to include contents and stock cover. Working out exactly how much your contents and stock is worth is very easy to underestimate if you are put on the spot – it’s a very common problem that people taking out home insurance face – so make sure you give this plenty of thought so you can get it right and not accidentally underinsure yourself.
Taking out business insurance is really not as complicated as you might think. There may be a few extra quirky questions that get thrown your way if you have an unusual trade, but for the most part it’s fairly straightforward. Getting your first policy sorted out should not however be a rushed job, and it is a good idea for you to talk to a broker to make sure you get it properly set up. In subsequent years you might find it easy enough to renew online, but you will want the confidence that you aren’t missing anything critical. The last thing you want is to be paying premiums for something that is useless.
Business insurance advice provided by small business specialist broker YOUR Insurance.