SMEs are a key target for insurers in 2011, with considerable competition to take costs out of the products, particularly when offered through direct and online channels. However, taking out SME insurance is not like insuring your car; commercial enterprises can be complex and the size,scope, needs and growth prospects of the business must be taken into consideration when sourcing insurance cover. The danger for businesses obtaining quotations online is that, while it may seem to simplify the process, businesses receive no advice on the most appropriate cover for their business. They risk underinsuring or not selecting the covers they really need, the proof of which will only come to light when they need to make a claim. For businesses like tradesman, for example, they need to know what employers liability cover they need for bona-fide sub contractors and when they need insurance and when they do not. Correct definitions for these areas of cover are simply not available on many direct sites. So how does the employer know what cover to take out? The simple answer is they dont and that could spell trouble for them further down the line, in the event they need to make a claim. Similarly, we are aware that quotations being obtained from some banks are significantly in excess of the standard market rates. This is particularly so in the case of new businesses - we have seen quotations which have been 50% higher than the quote we have been able to obtain. This looks like banks making the assumption that clients who have set up loans and business finance will take the easy option of accepting the quote they provide, rather than the inconvenience of shopping around for cover. At Higos Insurance Services we arrange a face-to-face meeting with your business, ensuring you get the best range and level of cover, so you can be sure your business has the right insurance protection, should you need to call upon it.
Why SME’s Should Talk To A Broker When Arranging Insurance