We’ve written before about the importance of reading the small print on your insurance policy. This advice was in connection with home insurance policies, but some recent research shows that business people are also skipping over the finer details of their cover.
According to a recent poll by the British Insurance Brokers’ Association, more than a quarter of Britain’s smaller businesses are failing to read the small print on their insurance policy. Business women are better than men apparently, with 30 per cent of female bosses always reading their policy in full, compared to only 16 per cent of males.
This does seem extraordinary. We know the devastating effect something like a flood or fire can have on a business: on its operations, buildings, staff, suppliers, customers…the list goes on. But a misunderstanding of the terms of an insurance policy could make the difference between a company surviving or going out of business. If you don’t have the cover you think you have, then you can’t make the claim you expect.
So our advice is: an insurance policy is like any legal document and needs to be treated with respect. Read it carefully – and do this not only when you take it out but every year when you renew. If you have any doubts or queries get some appropriate professional advice.
Only then can you be absolutely sure you have the right cover to protect your business in the event of a disaster.