StudyUSAInsurance.biz

Archive for the ‘Commercial’ Category

Here it is. I will keep it short and to the point. This article is targeted at small business owners.

1. Business insurance is largely transacted through brokers so they normally get the best deals. Get as many quotes as possible (from insurers) but go to a maximum of 2 brokers (as underwriters don’t like to see the same business proposition landing on their desk over and over). Try to do some research first as there can be a world of difference between brokers. A good broker may work with 20+ insurers & you only have to give him/her the information once. As is the case in any business, some brokers run a good show and some do not. A good place to find a list of brokers is via a brokers association website. It can be hard to tell a good broker from a not so good one. I suggest that the best way to do this is take some time to look at their company website and make your own decision from there.

2. Has your business had claims in the past? Is this increasing the cost of your business insurance? If so, get as much information about the claims as possible and present this when obtaining new quotations. Explain why the claim happened and what measures were put in place to try to avoid the same thing happening again. For example if you had a claim for a theft, then assure the underwriter that you have now installed shutters or CCTV or an alarm.

3. Don’t overstate your financial projections. If you do, then you may end up overpaying, especially if your business ends up having a have a bad year. There is no business benefit in overstating your projections. At the same time you don’t want to invalidate your cover by understating your figures. Take direction from the broker on this.

4. Think about whether you actually need insurance on every aspect of your business. Does it represent good value? For example, lets say your business is construction and you have 100 machines valued at 30,000 each and it is costing you 25,000 per year to insure them for theft and damage. In your 10 years in business you have only had one claim for 30,000. Assuming all the machines are working at different locations – you may want to consider keeping the 25,000 in the bank. Or possibly consider buying a policy for 10,000 which makes you responsible for the first 10,000 of any claim. This high excess option reduces your premium and places more of the risk with you. This is not skimping – it is simply making a decision on whether to transfer or retain the risk. Especially if you have a long history of paying insurance without ever making a claim then there are certain areas of the risk that you may decide to retain. Self insurance is not for everyone but it is an option.

5. Don’t claim for small amounts. When it comes to renewal you will need to shop around. Underwriters hate to see a frequency of claims even if the claims are for small amounts. If you a are making a number of small claims throughout the year the insurer is going to put your excess up eventually so try to avoid this as much as possible. A clean record results in cheaper premiums.

HGV insurance is specifically designed to protect the owner of the Heavy Goods Vehicle and/or business, the driver and the contents – contents that often belong to a third party.

Understanding which vehicles need HGV insurance and why, can save you or your business from encountering an unaffordable lawsuit should an unfortunate incident occur involving the truck.

What is classed as a HGV vehicle?

Any vehicle that weighs more than four tons is officially a HGV. Hauliers carrying large goods on pallets are usually operating in a HGV. In some cases HGVs are used to transport livestock or other ‘unusual’ goods which may require a special HGV insurance policy.

What is the extent of the cover provided?

All HGV insurance policies will cover the vehicle for damaged caused to others in the event of an accident as standard. Additional extras can be added to provide cover for damage to truck, damage to the contents and theft of either the truck or the contents. Some policies include Goods in Transit insurance but this is a separate policy to HGV insurance and is not adequate enough to cover truckers on its own.

Are Heavy Goods Vehicles at risk?

Trucks hauling large amounts of valuable goods are big targets for hijackers and thieves. Recently in the UK there has been a growing concern regarding fuel theft from HGVs too. The correct HGV insurance policy can be found through a broker to cover your truck(s) for all types of theft.

Purely as a matter of size, HGVs are at more risk than the standard car or van. The wind can effect these high-sided trucks on the motorway, they require exceptional skill and concentration to control and a lot of roadsters are unaware of the dangers of driving alongside a HGV – if a collision was to occur, it could cause serious damage to the other driver and the compensation payout could be huge.

Is HGV insurance expensive?

Basically, you want a HGV insurance policy to cover your trucks, staff and contents – a lot of additional extras may not apply to you and these are what make some quotes so expensive. Utilising the expertise of a qualified insurance broker is the best way to matching your business circumstances to the exact amount of cover you need, saving a lot of money.

Equally, you may be operating a HGV business involving the transportation of chemical or hazardous materials. You can also benefit from using a broker to find a truck insurance policy that covers you adequately and inexpensively for this type of cargo.

HGV insurance can cover your business for a lot of different issues that are unique to the trucking industry. It can also reassure your clients that their freight company is insured and their products should be covered while in transit.

Speak to an expert insurance broker to find the right policy and you can save a lot of money by only expending on additional extras that are specific to your particular business.