17 Apr 2019
10 key considerations for your small business insurance policy

10 key considerations for your small business insurance policy

There isn’t much point in having insurance if your policy isn’t tailored specifically to the needs of your business.

Without taking proper consideration, you could go ahead with a mismatched policy, meaning you could end up paying too much for premiums or you could find yourself underinsured.

“It’s crucial for business owners to fully understand their insurance policies. If you are buying a new policy, it’s so important that it covers what you need and that you are aware of the contract and it’s exclusions,” said QBE General Manager, Small to Medium Enterprises (SME), Aaron Gavin.

“Equally, when it comes to renewal time, it’s critical to ask the same questions because it’s likely your business will change over time. If you move your office, if you upgrade equipment, if you hire new employees – you need to update your insurer and potentially your policy.”

Here are some considerations to factor in before purchasing a policy for your business.

  1. Does the policy cover your employees, any temporary staff and independent contractors?
  2. Consider your excess costs. Would you opt for a higher premium for a lower excess? Or does it make more sense to pay a lower premium for a higher excess?
  3. Does the policy cover you for negligence if you make a mistake in running your business?
  4. If you operate a specialist business, have you chosen an insurer that has experience in insuring other companies in your sector?
  5. Are you covered for claims that may arise from work done overseas?
  6. Does your policy cover your legal expenses if you need to defend a lawsuit – even if your company hasn’t made a mistake?
  7. Are the monetary limits of coverage adequate for your needs?
  8. Does the policy cover you for all your risks?
  9. Are there any exclusions I need to be wary of?
  10. How would you like to pay the premium? If you want to pay annually, quarterly or monthly, is that an option?

Talk to an expert broker

As business insurance experts, brokers can find the policies that best meet your business needs. How do they work? They’re best described as licensed individuals or firms that serve as intermediaries between insurers and business owners to negotiate insurance policy contracts.

Brokers are often viewed as professional trusted advisors and can offer strategic risk management for business. They can also help business owners who operate in niche sectors with specialised insurance needs that might not be included in a package, for example, bed and breakfasts or 24-hour convenience stores. So how do you find a good one? Know where to look and what to look for.

Make your purchase with confidence

QBE business insurance is commonly bought through brokers. If you don’t have a reliable personal recommendation, the National Insurance Brokers Association (NIBA)* can help you find an accredited broker.

*The brokers on this site are not employees or agents of QBE, but are independent entities. QBE is not responsible for any advice provided to you by any broker on this site. Any such advice is the responsibility of the broker concerned.

This advice is general in nature and has been prepared without taking into account your objectives, financial situation or needs and may not be right for you. You must decide whether or not it is appropriate, in light of your own circumstances, to act on this advice. To decide if QBE’s products are right for you, please ensure you obtain and consider the Policy Wording or Product Disclosure Statements and Target Market Determinations, available online at QBE.com/au. Insurance issued and underwritten by QBE Insurance (Australia) Limited (ABN 78 003 191 035, AFSL 239545).

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