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5 key concepts to remember when insuring your SME

Article provided by King Price Insurance

As with insurance – and all things in life – honesty is always the best policy. And, when it comes to insurance – both business and personal – five concepts are key.

There’s no such thing as too much information

When you apply for insurance, you’re asked a whole lot of questions. Be sure your answers are 100% accurate. Your insurer assesses your risk based on your answers. If they find you weren’t truthful, or withheld important information, they may disallow your claim, or pay only a portion of it.

Check your excess

Your excess is the first amount payable by you in the event of a claim. So, make sure that you know exactly what your excess is (and that you’re able to afford it in the case of a claim).

Buckle up and do as you’re asked

When you insure a vehicle, for business or personal use, you must:

  • Have it inspected. (Unless it’s brand-new).
  • Check your policy to see the requirements around the ‘regular driver’ for each vehicle. There may be different options if you have a fleet of vehicles.
  • Install an anti-hijacking system, if your insurer makes this a condition of cover. You must also ensure that it’s always in proper working condition.
  • Use the vehicle for the usage noted on your policy schedule.
  • Make sure the vehicle is roadworthy, and that the licensing and maintenance are up to date.

Value your assets and property correctly

Many businesses underestimate the replacement value of their buildings and office contents. This is known as under-insurance and while it may save you on your monthly premium, it may mean that claims are only paid out in part.

Remember, buildings insurance should cover what it would cost to rebuild a property from the foundation up. Office contents should be valued for their current replacement value.

One last thing: Pay your premium on time

This sounds obvious. But it’s important. Pay your insurance premium. If you don’t, you won’t be covered. Full stop.

King Price Insurance is a proud Partner of the NSBC