It's easy to assume all coverage is equal when it comes to finding your best-fit insurance. But choosing opting for a low level of cover may end up costing you more in the long run.

It's also important to consider:

• Is the insurance cover aligned to the unique risks of your business?

• How quickly will you be able to resume trading following loss or damage, and will your insurance cover assist you to resume trading in a timely manner?

• What natural disasters is your business exposed to and will your cover adequately respond?

The responses will help you work out if you're receiving the level of coverage you need.

You may not have complete coverage

If you source a quote from a comparison website, chances are it's just for 'basic' coverage. Often, personal insurance comparison sites won't directly sell the insurance and will direct you to the insurer's website.

Adding extra cover means the quote will grow and, without assistance, can become a time-consuming process. We can help to make sure your business has the appropriate coverage for your specific risks.

You might be underinsured

It's estimated that between 70-80% of businesses are underinsured. This can lead to out-of-pocket expenses when replacing business equipment or repairing/rebuilding commercial premises. Insuring for your business's true value is the best yardstick. Your cover should reflect the true replacement value of stock, equipment and building/s.

Be sure to check your policy for maximum claim limits, exclusions, and coverage for mobile devices when you're away from the workplace. Should your business be in a disaster-prone area, read the policy fine print about floods, fires and storms, too.

Without a proper assessment of your business, you run the risk of subpar coverage and potentially significant additional expenses in the event of a claim.

Lower premiums may mean a higher excess

There's an inverse relationship between premiums and excess – lower premiums generally bump up the excess you'll have to pay at claim time. The good news is you can negotiate to change your excess to suit.

Often, taking a higher excess to lower the premium is perceived as a saving on insurance costs but, when you do make a claim, you will have to pay more towards it. In the event of multiple claims, the originally low costs can skyrocket.

It's safer to overestimate your needs

It could devastate your livelihood should your business be hauled through the courts to defend itself against an allegation, whether proven or not. Your legal bill could be thousands of dollars and a settlement, if you have to pay one, could surpass your policy limits.

You could be out of pocket if you've only opted for minimum insurance coverage. That's why a commercial umbrella policy makes sense for larger corporate risks, while smaller businesses should ensure that they have adequate public & products liability, management liability or professional indemnity insurance and consult with us. It will come into play when the costs of your business liability lawsuit shoot past your policy's existing limit.

Gain peace of mind with an expert

You may think you're saving time by choosing the first coverage on your search page, but insurance policies are complex. These contracts often run to 100 pages in legalese about inclusions, exclusions, etc. However, we can talk with you about your needs, get insights into your risks to customise a policy package suited for you.

We understand risk management and always check the fine detail of insurance policies to compare them. We're quick to point out if you're paying too much for the insurance you need. As well, we're handy to have onside when it comes to policy renewal – and review – time as well as when you need to make a claim.