When running a business, you naturally want to trim your outgoings as much as practically possible. Insurance premiums might initially seem a financial hindrance, especially if they are high. However, in the long term, it could actually be costlier for your company if it avoids them.
This is because those premiums pay for insurance on which you could inadvertently come to heavily rely. Without that insurance, your business could land itself in big financial trouble. Nonetheless, here are some ways in which you can help yourself cut upfront costs here and there.
Verify how much insurance you legally need
There are various forms of insurance that are relevant to businesses, though not all of these forms are legally necessary in all instances. A good case in point is employers’ liability insurance – which, though considered one of the main types of business insurance, is not strictly required for companies without employees or that employ only close relatives of the owner.
Nonetheless, employers’ liability would remain a legal requirement for nearly all UK businesses; therefore, it’s an appropriate kind of insurance to seek first. You would also, by law, need motor insurance for a car that you intend to drive for business purposes on UK roads.
Consider what insurance would be most relevant to you
There are other types of corporate insurance that, while not cast-iron necessities by UK law, could still seem well worth taking out. If your business often handles personal data – including payment details – of customers on its computer networks, then cyber insurance could be highly desirable.
If, however, you run a shop or restaurant where money tends to be transferred in physical form rather than online, you might be willing to forgo cyber insurance. Meanwhile, if your business is so small that you don’t need to drive a car for it, then motor insurance might be avoidable.
What other insurance might be necessary in practice?
However, in attempting to abandon more and more insurance obligations, you might initially want to discard an insurance policy only to realise that it’s actually a practical requirement for your specific situation – for instance, if you want to take advantage of particular growth opportunities.
A good example of such insurance can be public liability insurance – which, while not necessary in the same way as employers’ liability insurance, some customers may insist on you having. It might also be a requirement stipulated by a trade association if you want to obtain a licence from them. These are two example scenarios cited by Money Donut.
Want cheaper motor insurance? Specify your job title carefully
When taking out a car insurance policy, be careful what you say your job title is, as there could be a major effect on how much you pay in premiums.
In fact, The Telegraph says that up to £432 could be saved if you are choosy with your words at this stage. Insurers can deem certain jobs riskier than others and judge that risk from the job title. So, calling yourself a “care assistant” instead of a “nurse” – for example – could shave your premiums.
Seek a broker’s help so that policies can be compared
Comparing quotes from different insurers can help you discern which quote would, for you, be the best value; however, manually comparing those quotes can be horrendously time-consuming.
Fortunately, you could task an insurance broker with comparing quotes on your behalf. For each of many types of corporate insurance, Be Wiser Business Insurance can speedily look at different options before presenting you with a business insurance quote online or over the phone.
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