Why Review Your Business Insurance Regularly

Because you're reading this, chances are that you are a business owner who currently has business insurance. However, you aren't quite sure if you should heed your insurer's recommendation to upgrade your insurance. It could be just that they're looking to milk more money out of you.

The truth however is that they're right. The faster your business grows, the more you need to regularly review your business insurance. But why do you need to do this? Here are some reasons:

  1. Your old coverage may no longer be adequate. Let's say that you own a building so you insured it for fire protection. However, as the stocks inside it grow, you need to be able to protect those as well. Otherwise, you might end up losing a significant amount of money on that uninsured portion of your business. You would probably then have to use money out of your pocket to cover that loss--not good.
  2. So you can grow further. If you're a service provider who has seen significant growth in your business, it's often because a growth in your number of clients. And you know that dealing with clients means making sure that their demands and deadlines are constantly met. What would you do if you suddenly experience an outage in your area or if your equipment breaks down? You have nothing to worry about if your coverage includes business interruption and equipment breakdown. With these types of cover, you can be sure that your business stays afloat and goes on with its growth even if unforeseen circumstances occur.
  3. Your business has become more valuable. Every business owner always wants to see an increase in his or her profits. And when profits increase, so does the value of the business. What do you do when something is valuable to you? You protect it. That's also the reason why you need to constantly review whether your current coverage is enough to protect your business that's becoming ever more valuable. When values increase, so do the stakes, which is why you need to increase the protection as well. It simply makes sense to look at things that way.

Now if you're looking for the right insurance coverage for your business, contact the consultants at Rate Detective today. They will assess your very specific needs and provide you with personalised recommendations of Australia's top insurers based on that. Contact us today for more details!

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Published on January 1-th, 2013 in Insurance
Damon Rasheed is the CEO of Rate Detective, an Australian financial service comparison sites specialising in Life Insurance, Income Protection Insurance and home loans. Damon holds a Master's Degree in Economics from the University of Melbourne and has been involved in many start-up internet businesses.
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Any information or advice contained on this website is general in nature and has been prepared without taking into account your objectives, financial situation or needs.

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