Many people, whether they are sole traders or limited companies, will have a requirement for a basic, simple, cheap and effective small business insurance policy.
They will balance their insurance needs with the range of different premiums that are available. 2008, 2009 and 2010 are proving to be difficult years for any type of business trading in the UK. Everyone is penny-pinching and looking to save money at every turn.
For most of UK plc this translates into their usual customers not being in a position to spend as much money as they used, so pubs, restaurants, shops and hotels, to name but a few, are suffering.
Most of these types of business will, as a consequence of the squeeze on their income, be looking to make their own cost savings, and this goes on all the way up and back down the ladder. One area where a real saving can be made, is in your annual commercial insurance premium.
The usual scenario is that you receive your annual renewal, in 2010 this is likely to include an increase in the cost. You finally decide that it is time to do something about this and sit down at your PC, with time to spare, and decide that you will get a better quote.
Many insurers offer different types of cover, usually though the basic cover, contents, stock , liabilities, money etc is the same. The difference is usually in the additional covers which may or may not be available as part of the package.
One of these covers is commercial legal expenses. This is usually provided by a third party insurer (in the main this is DAS legal). What you need to do is to find out if this cover is included as standard, because you do need it. It is not a legal requirement but, with the UK being so litigious nowadays, you are never that far from a claim. For example, fending off a basic employment tribunal claim could easily cost £5,000, and this is if you are 100% in the right!
When looking for a cheaper alternative, beware that if you find a saving, if this is a result of a cover reduction, then you need to balance whether this is a risk worth taking.
As an example, a simple basic fish and chip shop insurance policy, with commercial legal expenses, can be purchased for less than £500 per year, you just need to know where to look.