Recent statistics suggest that more and more women are joining the business bandwagon.In the UK, there are now 46 women entrepreneurs for every 100 men. Currently, there are around 62,000 majority women-owned businesses generating £130 billion turnover.
You may have bought an office in a prime location, hired a team of staff and rubber-stamped your logo. Last but least of your priorities is business insurance. However the fact is overlook business insurance at your peril or it could cost you everything you are working for. Business Insurance protects your business against unforeseen circumstances. The trick is to consult a reputable broker or agent while shopping around for the best prices.
Here is a list of the types of business insurances that are worth considering:
Property : Covers for losses and damages to real or personal property such as fire damage to your office space.
Employers’ liability : A legal requirement if you have employees and covers on-the-job injury and property damage to your staff while working for you.
Public liability : Will cover non-employees claims for injury/physical damage caused by company negligence.
Professional Indemnity :Will cover you for claims from clients who suffered loss (es) after using your professional advice.
Motor :Same as personal but covers commercial work such as carrying equipment.
Buying the right insurance is not easy as it sounds because you are bombarded with different policies, leaving you easily confused. Disaster can be avoided by reviewing the common pitfalls of insurance. Below are 6 common pitfalls you need to steer away from.
1. Buying wrong insurances
You could end up paying for unnecessary policies so read and re-read the small print before committing to a policy.
2. Failure to update your insurance
Major life-changing events such as getting or losing your job, getting married or having a baby can affect your coverage significantly. Update your policy before the deadline to avoid making unnecessary changes.
3. Not shopping around for other policies
One of the most common and biggest mistakes is relying on one insurance agent to handle everything. If you impulsively buy your insurance without looking alternatives, you risk missing out on better coverage or price.
4.Comparing the prices only
Ensure the Insurance company is licensed, credible and financial stable to continually deliver its service. Research and get feedback about the companies from word of mouth or other colleagues.
5. Not knowing how much insurance you need
A major reason why buying insurance is a tough task is assessing how much coverage is needed. This can cause the headache of over-insuring or under-insuring yourself. For peace of mind, seek the advice of an independent insurance agent. Your assets and major illnesses will also need to be assessed.
6. Not taking the time to understand the policy
Failure to undertake this basic requirement could trigger disastrous consequences especially when you need to claim but your policy falls short. Equip yourself with knowledge about your policy to make the most of your purchase.
The cautious and practical attitude of businesswomen is reflected in recent figures suggesting they make fewer insurance claims than men. A survey of 150,000 entrepreneurs conducted by Simplybusiness.co.uk revealed that male-owned businesses cost insurance companies more in claims compared to their female counterparts.
Further research revealed that usually 50% of men have a “risk-confident” attitude to business compared to women. This research findings doesn’t come as a surprise. Women often take sensible approach to finance and are cautious in spending business money.
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Jo is a freelance writer living in London who specializes in How to articles and Career Development. If she is not browsing through the shelves in bookshops, she will be power walking around parks to keep fit.
At Pinkvox, Jo writes about KickStart and WorkLife. To read more articles by Jo, click here
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