The Perils of Buying Business Insurance Online

Purchasing business insurance is a big deal. You can’t operate without it and a business needs to be covered for any eventually both now and tomorrow. There may be a temptation to source and buy your commercial insurance online – it’s quick and convenient, right? – but you may need to think again when it comes to unavoidable claims you have to make in the future. Are you fully covered, or is your online insurance going to cost you way more than your initial convenience? Here are the greatest perils of buying business insurance online:

Inadequate coverage

Online platforms may offer pre-packaged insurance policies that may not adequately address the specific needs and risks of your business. There's a real danger of overlooking crucial coverage areas or underestimating the amount of coverage required. One of the crucial things to consider is your business description. It’s at the heart of what you do and it’s vital it tallies with your exact processes and business activities. Does your business easily fit into a drop-down box? Does the business description you are clicking on your online insurance application really tick of all of your boxes and match exactly what your business is about? If you operate in the tech sector, for example, which is evolving faster then the categories it slots into, can online insurance keep up? A list of trades on an online form may not do justice to the intricacies of your business, which must be understood at its core to be properly safeguarded. Surely a business description should be as wide and encapsulating as possible? And, when you need to make a claim – who will represent you if the insurer has questions, or needs to send a loss adjuster along to your business to possibly reject your claim?

Limited understanding

Without the guidance of a knowledgeable insurance broker, there’s a risk you might not fully understand the terms, conditions and exclusions of the policy you're purchasing. Business insurance policies can be complex, with legal jargon and technical language. Understanding the finer and complex details of the policy without professional assistance can be challenging, leading to potential misunderstandings, unexpected gaps in coverage - and disaster when it comes to making a claim.

Incorrect information

It’s all too easy for mistakes to happen when entering information online, and inaccuracies in your application may result in issues during claims processing later on. It's crucial to carefully review all details before finalising the purchase, but even then, are you a hundred percent sure there hasn’t been an error?

Lack of personalised advice

Online platforms generally lack the personalised advice and recommendations that an experienced insurance broker can provide. A broker can fully assess your specific business risks – examining your processes, your premises and your organisational structure - and recommend appropriate coverage, ensuring you benefit from a tailored insurance solution.

Security concerns

Sharing sensitive business information online will always pose a security risk. You must ensure that the online platform you choose follows strict security protocols to protect your data from unauthorised access – but can you really guarantee you are safe?

Limited customer support

While some online insurance platforms offer customer support, it may not be as readily available or responsive as the support provided by a local insurance broker. In case of questions or issues, the lack of immediate assistance could be a huge drawback - and cost you valuable time.

It’s possible to mitigate the risks of buying your commercial insurance online by thoroughly researching, examining reviews and testimonials, and comparing policies, but when it comes to your business and its crucial protection, surely it would be prudent to come to the experts who can do all this for you? A broker will take the time to understand your business inside and out so, when it comes to sourcing cover – and a broker will have an extensive knowledge of the entire market – you will be in much safer hands than putting your faith in the internet! When it comes to personalised advice and guidance, and the critical safeguarding of your business, the perils of buying business insurance should never be overlooked.

Read more blogs from Ascend:

Business insurance - What is-it? Do I need it?

Is your business at risk of underinsurance?

Any questions? Please don’t hesitate to contact one of our team.

matthew.collins@ascendbroking.co.uk |  Telephone: 01245 449 060