Top 5 mistakes businesses make with general insurance
Avoid These Common Business Insurance Pitfalls to Protect Your Company
Many UK businesses unknowingly leave themselves exposed to serious financial risks by making simple but costly general insurance mistakes.
Whether you’re a small business owner or manage a growing enterprise, having the right commercial insurance cover in place is essential to safeguarding your assets, people, and reputation.
Michelle Howells, our experienced Lydney Account Executive, shares the top five mistakes businesses commonly make with general insurance, and how to avoid them.
Underestimating the Implications of Underinsurance
This can lead to financial disaster. According to RebuildCostASSESSMENT.com’s latest annual infographic, 76% of UK buildings are underinsured, and properties found to be underinsured are, on average, only covered for 63% of the amount they should be.
Failing to accurately assess your rebuild or replacement costs means you may not receive the full payout needed to recover from damage or loss. Regular insurance valuations and coverage reviews are vital to ensure your business isn’t left vulnerable.
Not Being Fully Truthful or Updating Changes Within the Business
Not declaring updates such as the number of employees, annual turnover, or changes in operations may seem minor, but it can have major consequences. Even if unintentional, failing to keep your insurance policy information accurate can lead to claim rejections, reduced settlements, or even policy cancellation.
Always inform your insurance broker promptly about any business changes to make sure your policy reflects your current situation.
Thinking Something Isn’t Relevant When It Could Be
Some business owners assume certain details or risks aren’t important to share. However, it’s always better to run any uncertainty past your broker; they’ll be the judge of what’s relevant.
Your insurance broker is there to help identify potential exposures you may not have considered, ensuring you get the most appropriate general insurance cover for your operations.
Wanting the Cover to Fit the Premium
Trying to match the insurance cover you need to the premium you want to pay simply doesn’t work. Premiums are based on your risk profile, and cutting corners can leave your business exposed.
Instead, focus on getting comprehensive cover that truly protects your business. Your broker will help you find the best value policy for your needs, balancing affordability with adequate protection.
Being Unhappy With Their Broker but Not Looking Elsewhere
If you’re not satisfied with the service or support you’re receiving, don’t settle. Many businesses stay with the same broker out of habit, even when they’re not happy.
Renewal time is the perfect opportunity to explore your options and find a broker who listens, supports, and advocates for your business. The right insurance partner can make all the difference when it comes to claims handling and long-term risk management.
Protect Your Business With the Right Insurance Strategy
From underestimating cover levels to staying with a broker that isn’t delivering, these common business insurance mistakes can turn into costly problems when a claim arises.
At Hazelton Mountford, we specialise in strategic risk management and tailored general insurance solutions for businesses of all sizes.
If you’d like guidance on reviewing your cover or ensuring your business is fully protected, get in touch with our team today. We’ll help you understand your risks, find the right policies, and ensure your insurance strategy supports your business goals.