Packaged insurance - the advantages for small businesses
1. Save time on administration
If you manage a small business, you know how difficult it is to find time for administration - there always seems to be something more important to do. So evaluating different insurance policies, or reviewing the policies you already have, may not top the agenda when you have a major client asking for help, or a big order ready to go out. When you have several different policies - public liability, business interruption, property, and legal, for instance - you might end up paying more than you need to, or paying twice to cover the same risks. A packaged insurance policy could make your life much simpler, and save you money too.
2. One policy covers all your needs
A packaged insurance policy is simply a combination of different lines of insurance within a single package. As well as insuring your business equipment and premises, it might include cover for business interruption; that could help cover consequential losses if you have to close your business because of a fire in your office building.
Packaged insurance has several advantages for the small business. One is simply the ease of arranging your cover. Instead of having to evaluate several different policies - employers' insurance, public liability, and goods in transit, for example - you have a single policy to arrange. That cuts down on the paperwork and helps save your management time. Because it's one policy, you only have one annual renewal to worry about, instead of different policies needing to be renewed on different dates.
3. Consistent insurance coverage for your business
Separate insurance policies, purchased from different companies, often use slightly different language in their contracts. That can lead to gaps in coverage, meaning some risks fall through the cracks; unless you read the small print in detail, you might not find out about it before you need to claim. With a packaged insurance, all the components of the policy have been drafted by the same team, so the cover you get will be consistent.
4. Targeted for your business need(s)
Many packaged insurance policies are targeted for a particular type of business, whether that's office, retail, or food and beverage
. That can make them a better fit for the business than more generic policies, since they've been created with knowledge of the particular risks facing that type of business.
5. Save money on duplicate insurance coverage(s)
The rates for a packaged insurance policy will probably also be better than for the various risks covered separately, so you get an advantage in terms of cost added to all the other advantages.
Packaged insurance - the disadvantages for small businesses
1. May not cover certain requirements of your business
However, there are a few disadvantages to packaged insurance. For instance, if you have very specific needs, it may not include the special lines you need - for instance a media outfit could have a particular requirement for legal cover higher than most packaged policies offer. (While a good insurance package should cover all the risks required, some may not offer insurance against all events - so you will still need to read and assess the policy terms before making a decision.)
A firm with different business lines might also find packaged insurance doesn't cover off all its operations. An office packaged insurance won't be suitable if you also have a small transport and distribution operation, for instance.
Get a packaged insurance today!
However, for most small businesses, packaged insurance offers significant advantage of cover, ease of use, and cost - why make life more complicated when it can be simple?
Consider our spectra package from Sompo Insurance
and business package from EQ Insurance