Will Having Multiple Insurers Help Your Business Save Money?

Tue, Jul 22, 2014

Financial Advice

Cost efficiency is the cornerstone of most good business models. Unless a company is capable of managing its finances, making a profit becomes essentially meaningless. Many start-ups have failed, simply because they didn’t have a good handle on their cash flow or were unable to translate a huge turnover into an actionable profit.

When it comes to making essential business purchases, it’s therefore important that you get the best deal. And when talking about essential purchases, there are few more important than good quality insurance. Insurance can often be expensive, but the peace of mind it provides is worth much more than the price you pay for it. And for most businesses, insurance is also a legal requirement.

The Art of Buying Insurance: 3 Tips for Small Business Owners

When it comes to investing in insurance, some experts believe that you are best served by using multiple service providers. This is not an exact science, however, so keep the following points in mind when considering insurers and the financial products that you need: –

  • Savings or Convenience? Businesses will typically have complex insurance needs, which include cover for anything from employer liability to interruption of business. In most cases, business owners will go to a reputable provider, such as One Sure Insurance, who can offer comprehensive insurance that will meet all of their needs. But some business owners are more interested in savings than convenience, and instead choose to purchase policies from multiple providers – each policy being designed to meet just one aspect of their business insurance needs. But does this really make good financial sense?
  • Goose and Gander: The idea behind using multiple brokers is that you can get the best deal on each individual insurance policy. But experts actually recommend that small-to-medium sized companies try to avoid having multiple insurance brokers, and instead rely on just one provider for all their insurance requirements. This isn’t just about convenience – it’s also about savings. Whereas larger companies may find that they are able to score better deals by using multiple brokers, these savings are usually only accrued because they are investing in larger policies. Smaller companies, which typically have smaller insurance needs, are more likely to see savings by bundling their policies together.
  • Invaluable Relationships: There’s also another reason why using just one broker might make more financial sense for business owners. Even in our fast-paced technological age, building relationships is still a tried-and-tested way of getting on the inside track when it comes to getting great deals. Choosing a reputable provider in the first instance will often result in your being able to access better insurance deals further down the line. As trust is built, savings will become more apparent.

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