It’s often a challenge to find the right insurance for your business, so whether you’re new to the sector or you just want to better understand your choices, here are some tips to help you evaluate your options when considering insurance providers.
- When looking to find the right insurance, do your research
- Investigate the stability rating of the provider; agencies such as Standard & Poors give you a clear idea of an insurer’s ability to pay claims. Unrated insurers may not be able to cover the cost if you need to make a claim. Check the credentials of the provider; are they part of any reputable bodies such as BIBA or chartered institutes?
- Take recommendations, especially if you are new to the sector; asking other people in the industry is invaluable. Review websites also give you an indication of what people think of a provider, however, these need to be taken with a pinch of salt and you can’t guarantee the review is genuine, good or bad, so look for general themes and overall ratings.
- Know your business
- Once you have selected some providers you want to speak to about insurance for your business. Have all your figures ready, the provider won’t be able to give you an accurate quote if they don’t know the full picture. For example, do you know how much it would cost to completely rebuild your business if it was devastated by flood or fire? (Don’t forget to include outside equipment).
- Make sure you have calculated your projected revenue. This is needed to finalise your Business Interruption cover must, therefore, include future projected growth and not just be your previous years’ accounting figures.
- List all your activities.
- Make sure you tell the provider all the activities you currently do and include plans for new activities (e.g. are you planning on adding some more Forest School activities).
- Tell them about third parties and outside events.
- Do you have people that come into the setting to conduct lessons (dancing, music, sports)?
- Do you participate in any carnivals or processions? Not all providers provide cover automatically.
- Make sure you know who is responsible for what, both inside and outside your building? Does your landlord insure the building or is it part of your lease that you insure the property as well as its contents?
- Don’t forget to tell the provider about your specific security features, these may help reduce the cost of your premium. Do you have CCTV, burglar alarms etc.?
- Evaluate the provider’s policies
- In order to work out if the policy is the right insurance for your business, you need to properly assess the cover you are being offered you must understand your businesses’ individual risks. Each business is different and will have a different risk profile, make sure you understand what the critical, marginal and lower risks are for your business and check you have sufficient and adequate cover in place.
- Always read and understand the small print.
- Ask the providers questions, if you’re unsure or you don’t understand – ask. Providers should be able to help you better understand the policy they are proposing. ‘What if’ questions may help you understand what will happen and how the policy works.
And finally, Remember, insurance is a contract, you are therefore responsible for making sure you have told the insurer everything they need to know and that you understand your role and responsibilities as a part of said contract. If you any questions or would like us to help you find the right insurance for your business, please get in touch.