When mismatched, insurance policies could leave businesses underinsured – or paying too much premiums. That’s why having a full understanding of these policies is crucial for business owners.
In line with this, brokers will need to provide policies that best meet the client’s business needs, and help them purchase with confidence, according to Alex Green,
QBE Insurance head of product negotiated lines.
“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 its exclusions,” Green said. “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.”
QBE enumerated some factors for clients consider before purchasing a policy. These include:
- Does the policy cover your employees, any temporary staff and independent contractors?
- 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?
- Does the policy cover you for negligence if you make a mistake in running your business?
- If you operate a specialist business, have you chosen an insurer that has experience in insuring other companies in your sector?
- Are you covered for claims that may arise from work done overseas?
- Does your policy cover your legal expenses if you need to defend a lawsuit – even if your company hasn’t made a mistake?
- Are the monetary limits of coverage adequate for your needs?
- Does the policy cover you for all your risks?
- Are there any exclusions you need to be wary of?
- How would you like to pay the premium? If you want to pay annually, quarterly or monthly, is that an option?
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