If you run a business of any size, then you will need adequate business insurance to cover you for the various risks you will face.
When it comes to business insurance, you have a choice. You can either get separate insurance policies to cover you for each individual risk you face, or you can get commercial combined insurance to cover you for a range of risks with a single policy.
In this post we will outline the pros and cons of commercial combined insurance, to help you decide which approach is best for your business.
What is a Commercial Combined Insurance policy?
In short, a commercial combined insurance policy will give your business various different types of cover in a single policy. So, rather than getting separate policies for your buildings cover, your business interruption cover, your cyber cover, and so on, you can get a single combined policy to cover your business for a range of risks.
Read our full guide to commercial combined insurance. Our guide outlines how a commercial combined insurance policy works, and what it covers.
Advantages of Commercial Combined insurance
The biggest benefit of a commercial combined insurance policy is the convenience. If you take out a single combined policy to cover your business for a range of risks, then there will be no need to shop around for separate policies. Plus, if you ever need to make a claim on your policy, there will only be a single number to call, and a single claims process to manage.
Commercial combined insurance policies can also be a lot more cost-effective than separate insurance policies. Some insurers offer discounts if you choose a combined policy instead of numerous separate policies. On top of this, if you have multiple policies, there may be certain overlaps in your cover. This could mean that you will end up paying more than necessary for your insurance.
Disadvantages of Commercial Combined insurance
While most insurers will tailor your combined insurance policy to meet your exact cover requirements, there may still be some gaps in your cover. Check your policy wording carefully, including the cover limits, to ensure you are not at risk of underinsurance.
Also, commercial combined insurance policies may not include specialist cover for risks that are unique to certain industries. For example, businesses operating in the healthcare sector are unlikely to have all of their needs met by a commercial combined insurance policy.
Finally, while commercial combined insurance can be a more cost-effective choice than getting multiple different policies, you must not assume that you will automatically make savings through choosing a combined policy. Be sure to compare quotes and prices. And though it will be a less straightforward option, it just may prove more affordable to invest in a number of individual policies for your business.
Commercial Combined vs. separate insurance policies: which is best for your business?
Commercial combined insurance is a great choice for certain types of businesses. If you are a large business facing numerous risks, then it may prove too inconvenient and expensive to take out separate policies for every aspect of your business. SMEs, too, might value the peace of mind that comes with taking out a single policy to cover a range of risks.
However, some SMEs might not need some of the cover offered by a comprehensive commercial combined insurance policy. If a combined policy is surplus to requirements, it might prove more cost-effective to instead take out a handful of separate policies. This is something an insurance broker like us can help you with.
Additional specialist insurance on top of commercial combined policy
If you operate in certain industries – such as healthcare – then you may need to take out additional separate policies on top of your commercial combined insurance policy, to ensure you have all of the cover you need.
Should I choose commercial combined insurance for my business?
James Hallam is an independent Lloyd’s broker with access to a hand-picked selection of A-rated insurance providers. Talk to us about your business and your insurance requirements, and we can help you find the cover you need at the best possible price – whether this is through a combined commercial insurance policy, or through a number of individual policies.