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Business Insurance
All businesses should have at least one type of insurance covering their business. Almost every aspect of your business can be covered against financial, equipment, or skill loss.
There are many different types of business insurance, and several different ways to purchase them. One of the most common ways of buying insurance is to use a broker to look for a deal on your behalf. However, before you start looking for an insurer or broker; here is a look at some key information on taking out a business insurance policy. "several different ways to
purchase business insurance"
Buying Insurance Online or Offline
Over recent years, many insurance companies have started offering quotes and policies online. If you decide to look for insurance yourself, and without the aid of a broker, there are three different ways you can use the internet as part of the buying process:
(i) All Online
This is where all the details, quotes and payments are carried out online. You fill in a form, and a quote is given to you which you can then pay for online (Although some insurers take payment information over telephone or email).
(ii) Quote Online, Buy Offline
This is where the initial quotation form is filled in online, and the rest of the policy information and purchasing is carried out offline (Normally over the phone).
(iii) All Offline
This is where no actual quotation or sale takes place online. All the sale is carried out offline either face to face, by phone, or (rarely) by email. The website is just for information and reference, and plays no part in the actual buying of the policy.
Advantages of Online Quotes
(i) Time Saving
Arranging a quote online is usually much quicker than arranging one offline. Simply fill in the form and it will go straight to the insurer or broker, who can then deal with your enquiry and reply to you at the appropriate time.
(ii) Convenient
The process of arranging a quote online is usually much more convenient than through offline methods. There is no need to leave the office for a personal visit or take part in a lengthy phone call. You simply fill in the form, and are emailed or called back when a quote is ready.
"Purchasing insurance online is
often cheaper than offline"
(iii) Cheaper
Purchasing insurance online is often cheaper than offline. Many insurance companies will offer discounts (typically 5% of the offline price) to online policies. This is because an online quote saves them money on overheads (E.g.: Employee costs, phone call costs), which they can then pass back to you.
Disadvantages of Online Quotes
(i) Less Detail
The main disadvantage of online quotes and insurance is that because standard forms are used, there is a possibility that important information could be missed out. This could mean key areas of cover are missed, or that important details are not considered as part of the policy. This is much more of a risk with 'all online' insurers.
E.g.: If you apply for Employers Liability insurance, a standard online form may not have space to take into account the money your business has spent to reduce risks; which should lower the premium.
However, good insurers should check all information over email or phone before finalising policy details; allowing changes to be made from the basic quote to cover important factors. There is usually little point in getting a 'ready made' policy which may miss out crucial relevant areas of your business and insurance needs.
Article Index
1 Business Insurance
2 Should You Use a Broker ?
3 Combined Insurance
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