While employers’ liability cover is a mandatory cover, the other types of business insurance are not. Because of this, many people opt out of certain policies when they should consider getting covers tailored to their particular business in order to protect it.
There isn’t a one-size-fits-all when it comes to insurance, so the price will also vary depending on the policies you take out. But, while it’s impossible to provide an average cost without assessing your situation, there are still some factors that impact this cost, which we’re taking a closer look at as insurance brokers in Bolton.
Some sectors are considered riskier than others, be it because they handle heavy machinery, they involve working with the public or they deal with dangerous substances, for instance.
Owning a restaurant can be risky because people can become ill or slip and fall on your premises. If you offer legal advice to people, you can be liable for wrong advice or misinformation if people decide to claim against you.
So, all industries carry a certain degree of risk – however, you can expect to pay more for your insurance in some of them, such as the construction and financial sectors.
Whether you’re running a small or large business makes a difference. The bigger the size, the more it costs to insure, since there is more space to cover. Policies like business liability insurance can be affected, and you may have to pay more for contents’ insurance as well.
Location is important, not just because it can impact how much traffic your business gets, but also because it affects the cost of your insurance policies. Some areas can be more prone to natural disasters, like flooding, while others can have higher crime rates, for example.
The space itself is cause for consideration. If you own the building you operate out of, you may have to pay more in property insurance, since you’re not just insuring its contents as you might do when renting.
Another thing to consider is how experienced you are. Is this a new venture? Have you been running your business for many years? The more experience you have, the more likely it is for you to pay less insurance, since you’re seen as lower risk.
If, on the other hand, you just set up a company, you may find that your premiums are higher because you’re new – insurers will consider you as more high risk.
This is where our experience comes in as well. We’ll do the hard work for you and search all companies for the perfect insurance cover for your business – all at affordable prices. Speak to us on 01204 565600 for a free quote.
The extent of the cover will, unsurprisingly, affect the cost of your insurance. Different covers will have different prices – if you work in real estate, your property insurance is probably high when compared to your employers’ liability insurance, as your staff can be considered low risk as office workers.
Insurers may charge you depending on the risks that your business typically faces combined with the likelihood that those potential issues will come true. As an example, if your business is in a high flood risk zone, you may pay more insurance because there’s a high chance of flooding.
The number of covers you get also impacts cost. If you’re only getting two or three covers, it’s highly likely that you’ll pay less than someone who took out six or seven.
You can also start with a basic amount of coverage and then build on it over time as needed. At the start, you can take out public liability insurance that will cover you up to £1 million and then gradually increase that figure to £2 million, £5 million or £10 million, for instance.
As a business owner, you may employ workers to help you run your business. In that case, you’ll need to ensure your business is protected at all times. The more employees you have, the riskier the business is as well, so you’ll pay more if you have a big team than if you only hired one or two staff members.
Rates can also vary depending on the risk associated with the employees themselves. Working from home, from the office or from behind a bar are all different situations that don’t carry the same amount of risk. If you own a construction business, then your labourers are higher risk than the admin team working in the office all day.
Just like with your driver’s insurance, your business insurance will go up if you’ve had previous claims made against you. Insurers use this to see just how risky it is to provide you with the policies you’re looking for so, the more claims you have, the more expensive the covers are.
In addition, if you’ve also made several claims in the past, this may increase your premiums. So, if you claimed because the contents of your business were damaged, then you may pay more contents’ insurance when looking to take out another cover.
At IC Insurance, we can help you find the right policies for your business at the best prices. We have long-standing relationships with a large number of insurers, so using us as a broker will offer you many benefits. We can also help you to find ways to mitigate the risk in your business so that you’re not paying too much for your insurance.
