With technical innovation constantly making business transactions easier, purchasing trade insurance has never been so straightforward. However, when things become too easy, you may not fully understand what's under the hood of your policy. This can be because many trade businesses are sold the dream of buying insurance from comparison websites with price being the main factor.
Today, Rhino wants to explore the primary issues when taking out insurance and what common mistakes we find.
One common mistake is that businesses who take out a policy focusing mainly on price risk being underinsured. Having an underinsured policy leaves your trade business open to major financial risk.
As you may have guessed, the main description of this term is having an insurance policy that doesn't fully protect your business in the event of a loss. Suppose your business was covered for £1 million and worked on a large-scale project that caused damage totalling £2 million. You would be underinsured and face paying the rest of the bill yourself. At Rhino, you can take insurance out, ranging from £1 million in coverage to £5 million.
Instead of focusing on price alone, speaking with your insurance provider about your business, the work you undertake, and your requirements will help to form a well-rounded level of cover, protecting you from being underinsured.
As your business changes, so should your protection. Growing your company is great, but ensuring that your insurance policy stays intact is vital. Whether you take on new staff, move to larger premises, take on larger contracts, work on different projects or invest in new equipment, anything like this can change your policy terms.
Making sure that any changes made are reflected in your protection will keep your insurance valid should something go wrong. A common mistake among tradespeople is forgetting to update their policy or simply renewing their current insurance. Find out more in this article, explicitly stating why you should keep your insurance up-to-date.
Another common mistake tradespeople make is not thoroughly reading and understanding the terms and conditions they are signing up to. As with any contract, there are rules you need to comply with, and if you are found to be in breach of these conditions, your policy could be invalid.
If you have wilfully misrepresented your business operations to achieve a cheaper or more affordable premium price and something goes wrong where you need to make a claim, your insurer would be in their right to turn down the claim potentially leaving you to foot the bill.
Other situations could include your contracts stating that you must hold a certain level of insurance, for example, if you work for a local council. If these terms are not met, and you need to claim on your insurance, your policy provider could again void your insurance.
Please fully check what you are signing up for regarding your trade insurance and that you are in full compliance with the terms and conditions.
As has been a running theme throughout this article, we wanted to end with a common mistake of buying your insurance on price alone. Times are tough, and costs continually rise with materials, rents, petrol and more. But that shouldn't mean you should skimp on your insurance.
When looking at policies, consider the price, but also look for more information on the company. Find out what their rating is like online through reviews. For example, Rhino Trade Insurance has thousands of five-star reviews from tradesmen and women out on the job right now. On top of this, consider exploring their claims process before signing up. Again, the team at Rhino Trade Insurance aims to make insurance as transparent as possible and has written various articles where you can understand how to make a claim. Finally, consider checking the policy wording against any other quotes you have received to ensure everything seems above board.
We want to make sure you are fully covered if you find yourself in a sticky situation. Insurance is necessary and critical to your business, especially in the trade industry that is rife with risks and hazards.
Rhino Trade Insurance offers a complete suite of trade insurance policies that will benefit your business. From protections for your tools, damages, injuries and more, we watch your back with prices that are, on average, 40% cheaper than other companies.
Our team is available six days a week and can get you sorted in a matter of minutes. Want top-quality cover? Call now on 0116 243 7904 or visit our fancy website for an online quote today.
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