Business insurance can be frustratingly expensive, but it’s an essential part of good customer service. Here’s why, and how you can get it cheaper.
Running or managing your own business often comes with just as much risk as reward. From employees getting injured through to extreme weather stopping you from trading, you need insurance to safeguard your business in case the worst comes to the worst.
Whilst many business owners recognise that insurance is an essential aspect of protecting their own interests, however, few realise just how vital a comprehensive approach to insurance and indemnity is to providing great customer service. With a report from the Association of British Insurers (ABI) showing that its members have a huge daily pay-out total of £9 million on business insurance claims, it’s little wonder that premiums can soar leaving businesses questioning whether their policies are ultimately worth the money.
In this article, we look at just some of the reasons why business insurance is more than just a protective factor, and how you could get yours for less.
Insurance makes your business look credible
Credibility is an important factor in customer service. If your clients don’t feel that they can trust you, they’ll spend more time looking out for issues than enjoying the winning service you’ve worked hard to give them.
In business, a vital aspect of being a ‘credible’ entity is having the right credentials and safeguards in place to protect your contracts and customers alike – and that includes having business insurance. Business insurance shows your clients that you’re a legitimate company, and allows them to relax safe in the knowledge that they’re protected if anything goes wrong. It builds trust, and that’s the hallmark of a strong customer relationship.
Your clients might rely on you being covered
Another thing to keep in mind when you’re dealing with customers is that they might not be able to shoulder the same costs as you. Recognising and adapting to the unique circumstances of each customer is what great service is all about, ensuring that there’s synergy between supplier and buyer.
Enter trade credit insurance (and other select forms of indemnity). The fact is that if you’re a medium to large company, you’re probably playing around with a significantly larger budget than some of your clients which means that they could be hit much harder should there be an issue further up the supply chain. With over £400,000 paid out each day on trade credit policies, there’s no denying that keeping the wheels turning in the face of crisis will bode well for your client relations. With the safety blanket of credit cover, your customers will know that you’ve gone the extra mile to protect their interests – and that’s the very definition of fantastic service.
It’s the law
In the UK, businesses are only legally required to have employers’ liability cover – but many professional bodies and regulators have their own set of requirements for insurance. If your business doesn’t meet the industry standard, fails to get public liability insurance when it really should, or doesn’t have the right policy in place to meet contractual obligations, customers are going to notice.
Even if there is no compulsory insurance for the activities your business engages in, it’s worth considering a policy anyway. Remember, insurance isn’t just an exercise in optics, but a powerful tool that will protect your business in case of emergency.
Insurance doesn’t have to be expensive
Business insurance is a vital component of commercial success in the UK, but with premiums that seem to rise every year, it’s easy to understand why business owners don’t want to shell out on their policy.
Fortunately, there’s a more efficient way to get your hands on the right level of cover at a lower cost – compare costs at BusinessComparison! With some customers saving more than £435, finding a new business insurer with the site is easy, and you need only enter a few details about your venture to get started. Whether it’s public liability insurance, professional indemnity insurance or even commercial vehicle cover, protecting your business and customers needn’t be costly.
Remember, insurance is an investment in your business – creating trust amongst customers and employees alike. Getting it wrong could leave you in a serious financial hole, whilst getting it right could help you to overcome difficulties of all sizes.