Business insurance - typical cost?
Discussion
I am just trying to sort insurance for my business for the first time. The business has been going for 4 years but only recently taken on our first employee and realised i needed it.
We sell phone cases online and send them pretty much everywhere in the world, This made a few of the insurance companies say they could not offer cover as we sell to the USA.
I eventually got a quote from Allianz Insurance for £751. I have no idea if this is expensive or not but used another site that had the option for sign and print company and got a quote for £130.
The quote was pretty standard with £1m public liability & £10m employee liability. Contents insured for £75k ect. 2 directors and 1 employee if that makes a difference?
Can anyone advise if this seems a normal amount to pay, or even better if there is anyone on here who thinks they can offer insurance.
We sell phone cases online and send them pretty much everywhere in the world, This made a few of the insurance companies say they could not offer cover as we sell to the USA.
I eventually got a quote from Allianz Insurance for £751. I have no idea if this is expensive or not but used another site that had the option for sign and print company and got a quote for £130.
The quote was pretty standard with £1m public liability & £10m employee liability. Contents insured for £75k ect. 2 directors and 1 employee if that makes a difference?
Can anyone advise if this seems a normal amount to pay, or even better if there is anyone on here who thinks they can offer insurance.
People wonder why Insurance gets a bad rep for poor service or declining claims, then they apply the same buying attitude to a financial contract as they do spuds at the supermarket. Buying cheap rarely works out for the best, and bodging an online quote - even it is just just for purely benchmarking purposes - by potentially misrepresenting your business ('sign & print company') will not end well. I'm not having a go at you, OP, just trying to point something out that might save you grief in the long-run.
It's a very, very low risk business to be sure, but even £751 as a premium won't touch the sides if you drop a mug of tea on your laptop, receive a Public Liability claim from a customer (let alone the US!) - have you seen how much Solicitors charge for even sending a letter? - or your employee falls out with you and fabricates an Employers' Liability claim.
My advice is go see, or call, a reputable bricks & mortar local Insurance Broker. Yes, they'll charge 20-30% commission extra for the priviledge, but that's only if you actual place the cover. Meantime, you can raise specific queries like the US exposure - which most 'off the shelf' online Policies will not cover - and have the peace of mind it's covered, and a human being to answer any queries you might have after placement. Yeah, it costs more, but crap coverage is really no coverage, and a false economy. At the very least you can establish a benchmark on spmething like the correct cover basis (admittedly even if sometimes the best & brightest of Insurance staff don't end-up working at that level, but it's a start).
For what it's worth, £751 sounds not too bad, but could be bettered, whereas £130 is on the low side - think about what you pay for your house insurance (it's probably more), and then consider what sort of cover that buys you for £75k of assets, plus £10m Employers' Liabiility & £1m Public Liability.
It's a very, very low risk business to be sure, but even £751 as a premium won't touch the sides if you drop a mug of tea on your laptop, receive a Public Liability claim from a customer (let alone the US!) - have you seen how much Solicitors charge for even sending a letter? - or your employee falls out with you and fabricates an Employers' Liability claim.
My advice is go see, or call, a reputable bricks & mortar local Insurance Broker. Yes, they'll charge 20-30% commission extra for the priviledge, but that's only if you actual place the cover. Meantime, you can raise specific queries like the US exposure - which most 'off the shelf' online Policies will not cover - and have the peace of mind it's covered, and a human being to answer any queries you might have after placement. Yeah, it costs more, but crap coverage is really no coverage, and a false economy. At the very least you can establish a benchmark on spmething like the correct cover basis (admittedly even if sometimes the best & brightest of Insurance staff don't end-up working at that level, but it's a start).
For what it's worth, £751 sounds not too bad, but could be bettered, whereas £130 is on the low side - think about what you pay for your house insurance (it's probably more), and then consider what sort of cover that buys you for £75k of assets, plus £10m Employers' Liabiility & £1m Public Liability.
Happy you to have a look for you.
Once you are dealing with US exposure, then there won't be many, if anywhere you will be able to buy the cover online.
Simply saying you are uk only is miss representing the risk to insurers, and could land you without cover, and footing the bill for a claim yourself.
I can't say whether the price is fair or not without a lot more info.
NB - to source a USA quote in the USA you need to be an American company using an American broker.
Once you are dealing with US exposure, then there won't be many, if anywhere you will be able to buy the cover online.
Simply saying you are uk only is miss representing the risk to insurers, and could land you without cover, and footing the bill for a claim yourself.
I can't say whether the price is fair or not without a lot more info.
NB - to source a USA quote in the USA you need to be an American company using an American broker.
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