23 February, 2010

During a recession businesses inevitably look to become leaner and cut costs wherever possible - but in the long term some savings could prove to be a very costly decision. 

You may view insurance as a necessary evil but if you cut back on your insurance cover (and it can be very tempting to try and shave a little off the bottom line if you run a small business), you may find that when it comes to the crunch and you need to make a claim you could run into trouble and find you're underinsured or, worse still, end up in front of an industrial tribunal.

Here are a few simple points to consider when reviewing and purchasing business insurance cover:

• Shop around. Remember, however, that whilst headline prices for those competing for your business can be appealing, you need to be confident that any new supplier will match or exceed the service standards of your current provider - make sure you are comparing like for like.

• Check your cover. Get a second opinion and look at your options. The important thing is not to allow crucial cover to lapse and to make sure that you have everything you need but are not underinsured.

• Know your needs. Have an idea of the cover that you need, and just as importantly, the cover that you don't need. This will enable you to confidently discuss matters with your existing or potential insurer. Whilst they are the experts, that does not mean you should take what they say without question or challenge.

• No two businesses are the same. Remember that whilst 'off the shelf' insurance packages may be appealing, the cover that you require needs to be tailored to your own specific needs and requirements.

• Make sure the insurer you choose understands your individual circumstances. Any competent insurance provider you choose to work with should, before they do anything else, understand your approach to risks and the extent of your willingness to retain some of those risks before providing their indication of insurance terms to you.

More information on the insurance that Cornish Mutual offers can be found on our products pages or by calling 0845 017 5513