Do you have a £20 head?
By David Waters, Summer 2011
I was talking to a fellow recently about the notion of 'protection' and he shared an amusing story.
He had started cycling with a club and was in the bike shop getting fitted out for his first outing. When it came time to choose a helmet he found a dizzying array of colours, shapes, sizes ... and prices.
When he quizzed shop staff about the difference between the deluxe model (at over £200) and the 'el-cheapo' variety (at £20), the guy looked him straight in the eye and said flatly, "if you've got a £20 head, get a £20 helmet".
Why buy insurance?
While many believe protection of any kind is a waste of money and others can be seen as over-protective, in many cases a certain level of precaution is just plain sensible.
Take business insurance for example - I don't think anyone will dispute there are risks inherent in any commercial venture (if you do know of any that are risk-free, my number is at the bottom of this article!).
No-one likes paying for something they don't need and insurance is often held up as one of those things we buy 'just in case'. In the majority of cases we won't need to make a claim, and that's a good thing too.
If unforeseen misfortune does strike however, that small savings account will likely be your only protection against a potentially catastrophic loss.
So how do you decide?
Put simply, insurance is just paying another party to take on risk for you. In return for passing on your risk you pay a fee or 'premium'.
You should only buy insurance when you actually need someone to take on some of your risk, and it's worth paying the premium.
Getting your specific situation matched to the right level of protection is important because this is how your premium is calculated - insurance packages can be tailored for specific sectors or activities so it's worth dealing with a specialist who understands your industry.
Other considerations fall under 'due diligence' and include for example the ease of making a claim and how efficiently or quickly claims are paid. These are very important too, so always do your background checks.
The bottom line
When it comes to your business, your capacity to deal with significant misfortune will usually depend on your level of protection, and that means insurance.
Getting your cover matched correctly to your specific circumstances is the key to keeping your costs down and sleeping easy in the knowledge that your business and your future are secure.
To help you align your insurance cover with your actual risk, contact CHIS for a comprehensive audit of your existing insurance or to arrange a quote for your future insurance protection.
Like the adage goes, you don't need it 'til you need it.
So, when you think about renewing your protection, what kind of head do you have?
" I have always been quite sceptical about whether an insurance broker could deliver on the service promises they tend to make but I have been amazed and delighted with the level of service and commitment from CHIS.
Their industry knowledge and expertise mean that although we test the market each year as our insurance comes to renewal CHIS has been consistently the most cost effective option for us."
Mandy Thorn, Marches Care Ltd
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