Don’t make insurance mistakes with your business


We tackle some of the most common misconceptions people have about their business insurance. Make sure you don’t make them.
1. Thinking you don’t need insurance 
People commonly think that if they don’t charge for a service or they are only a small business that they don’t need insurance.  If you are providing a service of any kind, even if it is free of charge, you could have a claim made against you.
There’s also the mistaken belief that ‘It won’t happen to me’ because you’re careful, professional and do a great job. No one will need to claim against me will they?  We know from experience that things can happen outside of your control. Even if you are not at fault, it doesn’t stop someone claiming against you and then you’ll have to pay to defend yourself.
2. Are your sub-contractors insured?
If your business contracts another person or company to carry out work on your behalf you must make sure they have insurance. If not, you may not be covered if a claim is made.
3. Not updating your policy

Your business practices (what you do) is specified on your policy. It’s very important that you update it if you start to carry out new types of work.  If you’re insured for Coaching but then qualify as a Management Consultant, your insurance will not cover your Management Consultancy work. You’ll need to add it to your policy.  It’s usually free to add extra practices, just don’t forget.
4. Cancelling your insurance too soon

Businesses close, people retire, but claims can be received many months after an incident. If you have a ‘claims made’ policy then it must be active at the time the claim is received in order to get help from your insurers with such a claim.
5. Responding to a claim

You might be tempted to respond to a claim. You might feel that you’ve done something wrong and you want to apologise or feel that you’ve been unfairly blamed for something and you want to out forward your side of the story.  No matter how much you want to, please don’t respond. Acknowledge the letter or email and let them know that you’re informing your insurance company.
Definitely don’t admit fault or try to defend yourself. Leave it to the professionals.
Having Professional Indemnity, Public Liability and Medical Malpractice insurance means that if a claim is made against your business, you have professionals who know exactly how to deal with it.  The Claims team will remove all the stress, worry and hassle and allow you to continue to work whilst they investigate, negotiate and respond on your behalf.
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