If you run your own small business you will have just passed another milestone of a new financial year – congratulations.
If your insurance bill is a large part of your 2018 expenses then as you start a new financial year it is a great time for an insurance review.
A few things that I have come across lately suggest to me that you should regularly look at your insurance program.
- If you operate from home then does your insurance company know that you have a home office? It may be that they don’t cover your equipment at home, it may be that your operation is larger or has a higher risk profile. It could also mean that the number of staff working there means you have more people coming and going, however, the main thing to do is to let them know that you have a business located there and that you have this in writing.
- Are your company vehicles insured for realistic values? Most of us have indemnity value policies, this means you have to agree on the price the insurance company will pay you if the vehicle is stolen or written off. If you are massively over-insured they will not refund you the difference.
- If you have life insurance, has the value that you hold kept up with your changes in circumstances, have you had a new child or divorced. In both cases, this is a good time to review the type and level of life insurance cover you have.
- Many of us have income protection policies, astoundingly something like 75% of these are indemnity contracts. This means you have to show your earnings at the time of claim. You can get policies that have an agreed value; this is when the minimum amount you would get is agreed up front. Taking this approach can be a much safer contract to hold if you may have variable levels of income over the coming years.
A review is free so why not have a look at the covers you hold at the start of this new financial year and get you and your company off to the right start.
If you would like me to have a look at what you hold I am only a phone or email away.