A crucial part of the risk management structure that significantly protects your company and staff from the financial expenditures of disasters, accidents and mistakes that emerge and wreak havoc to you and your property. Know firsthand that insurance is not something that can be counted on as an alternative to risk management and so it will definitely not cover all of the risks you will face.
Buying insurance may be easy but it is not really that simple. Below is a simple guide on buying insurance for beginners so that they will know which things require their extra attention.
You can acquire insurance either from a broker or insurer. A broker is someone who acts on your behalf and he will be the one to negotiate with them in order to get you the best insurance product tailored for you and your needs. Brokers usually get a commission for their service. On the other hand, some insurers will be happy to deal directly with their customers while there are those who only deal with brokers. In any way how you want to acquire your insurance, it is best that you check if the broker or insurer you are getting does indeed have the proper credentials so that you would know that you are entrusting the right people when it comes to securing the proper insurance products for you and your company.
Ensure that the insurance form is filled out properly and never hide anything that may be used against you should the time comes. Most insurance companies will want to know if you have already been refused insurance previously, if you have claimed any insurance claims in the past, and other such things like that. The point is, should you fail to disclose any vital information, then your insurer has the right to decline paying you any claims, or invalidate or cancel your policy.
Your insurance contract contains the wordings of the policy as well as the schedule which consists of the policy’s specifics as it is applied to your company. Ensure that you read all of it very carefully so that you know you are covered for all the things you have requested. Should you wish for some extra coverage on your policy, talk to your insurer or broker for an extension or endorsement.
Feel free to request for a copy of the policy right even before you are going to pay the premium. This will give you the chance to check first all the things you need to know about insurance-related exclusions, definitions, excesses and the limits.