Pros and cons: Combined or separate business insurance policies?

There’s a tendency to believe that anything that “lumps together” a range of different product offerings into one package, means you will be making a compromise of some kind.

Buying something that is a combination of things can also be seen to imply that it’s an “off the shelf” kind of deal; that can’t be tailored to match specific business needs Excess Reimbursement.

This is not the case with combined business insurance policies.

They have been designed to accommodate a range of requirements, organisation types and sizes.

What does combined business insurance mean?

To make it easier and more convenient for some organisations to arrange insurance cover, some of the providers have grouped together the essential elements of business insurance into one single policy.

Within these policies, providers have included a menu of options, that enable customers to create a business insurance policy that dovetails with their own specific risks and preferences.

So, it’s possible to find the standard terms that match your business needs, then add or ignore extras to create a more bespoke policy.

When multiple policies are better

So, why doesn’t every business just opt for one combined business insurance policy?

Put simply, it’s all about choice and potential complexity.

If your organisation has multiple risks or complicated business operations, then you may need to mix and match a range of insurance products to ensure you are fully covered with Insurance broker in Auckland. 

This can be the only way to create equitable insurance premiums to cover all your risks too – for example, if you handle a lot of chemicals, or create high value products. You may also be better off with a sector specific policy, such as shop insurance.

Time saving

For some companies, having a combined policy that covers such things at buildings and contents, business interruption, public and product liability, and Directors & Officers insurance makes great sense.

Putting all your business risks in one policy clearly saves you time when shopping around for the most competitive premiums reimburse insurance excess. Some combined policies are highly cost effective at the same time as providing substantial cover levels for many types of businesses.

Having to price up a series of separate policies that offer the right level of cover at the right cost level can be time consuming.

Renewal deadlines

For some organisations, one of the biggest selling points of opting for an umbrella business insurance product is that it means only having one renewal date to worry about. This makes budgeting easier too.

Multiple renewal dates and premiums can be more of a management task and requires the company to have sufficient funds to cope with any increases over the year.

Making sure you are fully covered

Whether you choose to opt for a combined business insurance product, or a series of policies that cover your risks as a commercial organisation, the same rule applies.

You must be sure that you are adequately covered across your entire business operations.

It’s easy to look at the most obvious risks – such as your buildings and the equipment inside – and leave your company exposed to financial problems that are less apparent but potentially equally fatal for some businesses.

For example, does the combined business policy give you enough cover for such things as personal accident with insurance excess, goods in transit, money on your premises, refrigerated stock or loss of your licence or registration?

Talk to us about getting a business insurance policy – or a series of policies – that manages your risks effectively for the right premium insurance claim excess. 

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