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How to switch your business insurance with minimal stress

How to switch your business insurance with minimal stress
11-09-23 / Tau kaVodloza

How to switch your business insurance with minimal stress

Whether for the sake of finding a policy with a better value-added offering or something more suitable for their unique business needs, business owners may consider switching insurance providers at some point along their business journey.

“The process of switching can be relatively simple,” says Karen Rimmer, Head of Distribution at PSG Insure, “provided that business owners have the required documentation on hand as well as a clear understanding of what they need in terms of the right kind of cover. However, the guidance of an adviser will most certainly be invaluable in streamlining this process.”

Why switch?

Business owners may deem it necessary to switch insurers as their business transitions through various stages of growth. Along the way, they may acquire office property, IT assets or vehicles. Businesses may undergo changes, such as geographical moves, team expansion or the onboarding of new directors and executives. With these changing circumstances and needs, they may find that there are essential features and add-ons that their current insurer does not offer.

Whether it's more comprehensive coverage, additional policy perks, or specialised plans tailored to specific needs, policyholders may feel compelled to switch to a provider that offers a more extensive and tailored range of insurance options.

“Costs and affordability are also reasons why business owners decide to switch insurance providers,” explains Rimmer. “In response to evolving market factors, insurance premiums can fluctuate over time. When the price of a premium is revised upwards, policyholders may consider changing their insurer as a cost-saving measure that may relieve financial pressures on cashflow, by keeping monthly expenses to a minimum.”

Another common reason for changing insurance providers is dissatisfaction with the customer service or claims handling of their current insurer. If policyholders encounter difficulties in processing claims, experience delays in receiving payouts, or receive poor support during the claims process, they may opt to find a more responsive and reliable insurance company.

Tips for making the switch

“Arguably, the most crucial aspect of switching insurance providers is to compare the coverage offered by different insurers,” says Rimmer. “Pay attention to the policy's inclusions, exclusions, and limits to ensure that it aligns with your requirements and offers adequate coverage for your specific needs and unique business model.”

And while cost-saving may be a legitimate motivator for switching insurance providers, it's also vital to strike the right balance between affordability and adequate coverage. Obtain quotes from multiple insurers to compare premiums, deductibles, and any additional fees. Consider how these changes in costs will affect your budget, and make sure you understand what is covered under the new policy at the given price point.

“For clients with more extensive insurance needs, buying bundled policies with one provider could also reduce the cost of the premiums. Using bundling opportunities in this way may prove cheaper and more convenient than buying different products from different insurers,” she adds.

It may also be useful to research the reputation and customer service track record of the insurance companies under consideration. Look for online reviews, customer feedback, and complaints to gauge how the insurers manage client relations and build relationships. A company with a reputation for excellent customer service is more likely to provide a hassle-free experience when you need to file a claim or seek assistance.

“The timing of the switch also needs to be carefully planned to avoid any lapses in coverage,” says Rimmer. “Ensure that your new policy is in effect before canceling the existing one. You should also review the cancellation process of your current policy and ensure that any notice periods have been duly followed.”

Enlisting the help of an adviser

An insurance adviser can provide valuable guidance throughout the entire process. As experienced professionals and risk specialists, they are in the best position to conduct a thorough review of your existing policy and current coverage and can identify any gaps or opportunities for improvement.

“One of the key advantages of working with an insurance adviser during the switching process is their ability to make the most accurate comparisons between providers and insurance products,” says Rimmer. “By providing objective and unbiased advice, insurance advisers empower individuals to make well-informed decisions, based on their preferences and requirements.”

Additionally, partnering with an adviser can go a long way in alleviating the administrative burden of switching. Advisers can handle the necessary paperwork, help facilitate the cancellation of the existing policy and ensure a smooth transition to the new insurance provider. This will ensure that there are no gaps in coverage and that the business remains protected throughout the process.

Furthermore, insurance advisers can explain complex insurance terms and conditions in a clear and understandable manner, to ensure that clients are able to grasp the implications of various policy features. They can also address any questions or concerns you may have along the way.

“By leveraging the expertise of insurance advisers, individuals can navigate the insurance market with confidence and peace of mind, knowing that their insurance decisions are well-informed and in their best interest,” concludes Rimmer.

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