Insurance is one of those unfortunate but necessary costs that every business needs to incur, as it will protect you and your employees from financial ruin should an unforeseen catastrophe occur.
However, it might be tempting to set it up as quickly as possible so that the hassle is out of your hair. In some cases, you might be inclined to get a friend’s referral or do a quick internet search for a company name and phone number rather than doing your proper due diligence in sourcing plans and insurance brokers and then comparing them thoroughly. Particularly when starting up, your attention, and expertise, is on the business production and marketing side, not on the many types of insurance coverage available and what you actually need.
Let’s look at some of the problems you might encounter if you rush your insurance setup.
Key Details
When rushing an insurance plan and not properly setting it up, key details might not be properly included or accounted for. There may be aspects of your unique business that the agent isn’t aware of. They might apply a one-size-fits-all insurance plan approach to your business which may be inappropriate and lead to problems down the line. Moreover, it may lead to biases that prevent you from getting the best deal on the market.
Price
When sourcing insurance, you naturally want to get the best value for money. This means sourcing the best possible prices within your range. Since insurance policies for businesses can become quite complex, as there are various things covered and various premiums and deductibles factored in, it can be quite difficult to compare quotes properly without the necessary understanding.
Therefore, a qualified and objective professional, like a financial consultant, should do your insurance plan comparison for you and take the time to source the best possible prices on the market.
Coverage
A rushed insurance setup might only compare certain price points but then fail to compare the extent of the coverage offered. There is no point in paying lower prices when you are not covered for things that you actually need. It is better to pay slightly more but receive more comprehensive coverage that won’t leave you out in the cold when you need to claim.
Insurance is all about the mitigation of risk. Therefore, the more comprehensive and relevant the coverage, the better.
In some cases, you may be paying for things that you don’t need, so your coverage should be tailored better.
An expert insurance professional can help you negotiate a better insurance package that is more tailored to cover the specific needs that your company has. Don’t settle for a one-size-fits-all approach.
Benefits
Every insurance policy comes with a range of benefits. You want to make sure that the benefits are not only appropriate to your specific needs but that they are benefits that you can actually use so that you get the best value for money.
In many cases, insurance companies will offer benefits hidden behind walls of admin, making it extremely complicated and difficult to use them.
Therefore, it is advisable that your insurance professional identifies these and advises you accordingly so that you don’t sign up with an insurance provider who offers you benefits you can never access because the requirements are so stringent. Also very important is that you have a clear list of requirements for the policy that you do sign up with so you can regularly check on these and maintain proof of compliance, should it be needed.
It’s also best that you don’t sign up for a policy with benefits that are irrelevant to you and that you will never use.
Service
Rushed insurance setups rarely consider customer service and almost always only focus on price. However, good customer service from your insurance provider is a critical part of what you are paying for. When you register for insurance, you are signing up for a long-term relationship with the insurance provider that will hopefully last many years.
The last thing you want is severe levels of stress arising when you want to claim owing to bad customer service. Avoid this upfront by sourcing your provider carefully.
For expert insurance services to ensure the best long-term care and benefits for you and your employees, contact us at Prosperity QB today!
