Business Insurance - Commercial Property Insurance From Macbeths

Buying Business Insurance

A number of factors have changed the face of purchasing business insurance with both benefits and drawbacks for companies.

The rise of online purchasing has made it quicker and easier to buy with some very tempting ‘deals’ on offer. Meanwhile, the consolidation and convergence of the insurance sector means companies can purchase standard cover packages that are on offer from most major insurance companies. Furthermore, the rise of comparison sites makes it easier to compare prices before buying.

However, choosing the right business insurance has never been more complex, and it’s more important than ever not to be underinsured. While you may be naturally drawn to the convenience and potential savings of buying online or direct through an insurance company, the apparent benefits may not be all they seem. The lowest premium is the lowest for a reason.

Hidden drawbacks

If you’re going to buy direct from an insurance company to cut out the broker and save money, this may not necessarily be the case in the long run. Plus there are the time and effort implications on your part.

If you’re buying insurance direct, surely you’ll need to shop around to find the most appropriate cover and the best financial package. But with so many insurers to choose from where do you start? And can you be sure you’re getting all the cover you need?

A good broker will sit down with you and carefully assess the risks in your business and put together an insurance plan explaining in plain English the insurance jargon. Then they will source quotes from a number of insurance companies to find you the most appropriate policy and the best deal. In many cases this is not more expensive than you going direct , and it is certainly less time-consuming. Plus, you have the peace of mind that your cover needs have been assessed by an expert.

Comparison sites are quick and easy to use , but they usually provide limited information on cover, mainly offering standard packages and don’t always offer access to the full range of insurance companies. Crucially, standard packages are frequently inappropriate for business.

Feel the difference

The reality is that every company is different, so there is no ‘one-size-fits-all’ approach to buying business insurance. A safer and more effective solution is to get expert, targeted and well-researched advice from an established chartered broker. This will not only keep you on top of your rapidly changing market, but also add real value by matching policy price with relevance and effectiveness.

Good brokers will have packages for specific business sectors, mixing tailored cover with standard where possible to reduce costs. Tailoring insurance to fit specific sectors means cover can be stronger in higher risk areas offering greater protection where it’s needed most. For example, Macbeth has a number of in-house sector experts, who can offer key advice to a range of companies from medical equipment manufacturers and recruitment agencies to equestrian businesses and agriculture.

In fact, companies should consider using a broker in the same way as they would an accountant or a lawyer – as professional support. When you’re sourcing any service, it pays to shop around and ask about recommendations from friends and business colleagues. Plus, make sure they can offer expert help for your sector.
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*Information correct as of 1st May 2016

Author: Dennis Walsh | January 11th, 2015

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Dennis Walsh

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