28-08-2007
Get your assets straight before buying insurance
Businesses could be paying over the odds on their insurance premiums because they haven’t kept a proper record of the company assets.
According to Real Asset Management, less than 40 per cent of assets on record can be easily identified during a physical audit, and around 20 per cent do not even exist. This causes problems with business insurance, as premiums will be higher if there are a lot of assets on record that are no longer in use. It could also result in any claims being challenged.
If you buy business insurance based on an asset register that hasn’t been recently updated, the likelihood is that your company will pay higher premiums. It is vital that a thorough check is done, and any assets that are no longer needed are disposed of.
One company – a leading university – reportedly reduced their insurance premiums by 49% simply as a result of careful checking of their asset register.
If you have old assets on your register such as an out-dated PC, the insurance company is likely to see red. Assuming such an item would not be in use they may choose not to pay out a claim.
Experts recommend barcoding all assets during a physical audit, alongside a detailed description and location information. This way it is easy to keep it updated.
For business insurance that won’t sell you short, try getting quotes from Simply Business. The quotation process is fast and easy, and you can buy online or over the phone. All quotes are from leading insurers and are fully tailored to your business needs.