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The ‘big 5’ obligations of short-term insurance for SMMEs

Article provided by King Price Insurance

Insurance. Sounds easy. You pay your insurer to take over your business’ risk, so that when disaster strikes, your losses are covered and you can carry on trading. Bingo.

But while your insurer promises to treat you fairly, and to pay out when you claim, you’ve got certain commitments too. A business insurance policy is one of the great trust relationships of our time – and like all relationships, both parties need to build the trust.

Here’s how to get the most out of a short term insurance policy for your business:

1. Make full disclosure

When you apply for insurance, you’ll be asked a series of questions and you need to be 100% correct with your answers. Insurers assess your business’ risk and price your premium based on your answers – and if they find you weren’t correct, or withheld important info, they may disallow your claim, or pay only a portion of it. So, if your 19-year-old son is going to be driving your company’s ‘delivery vehicle’ or if your HQ is in your garage at home, be sure to mention i

2. Pay your premiums on time

If you don’t pay, you won’t be covered for that period. Full stop. And that could be an expensive oversight

3. Keep your policy up to date

It’s super important to check your policy schedule and make sure all the details are correct. If your business changes in any way – if you move to a different building, buy expensive machinery, start dealing with large sums of cash, or branch out into different revenue streams, for example – be sure to share this info with your insurer. Some changes may seem minor but could have a major impact on your premium and claims. But, it’s not all bad news because your premium could actually go down! Insurers also need to know about any losses you suffer, whether or not you claim for them

4. Keep it together

Insurers love clients who cover all their risks in 1 place – and they’ll often reward you with a discount. So, if you cover your electronic equipment, buildings and company cars together, for example, you should pay less

5. Know your stuff

Make sure that you know what your policy includes, and excludes. If you’re unsure, chat to your broker

For more tips on making your SME’s business insurance work for you and your unique risks, visit King Price’s website.

King Price Insurance is a proud Partner of the NSBC