Can I get insurance for just a week / the days I need?
If you've been looking for public liability / asset protection insurance for just a few days only, you've probably discovered that it's been difficult to obtain.
So why is that?
How insurance companies balance risk
Most people find this counter-intuitive, but the reality is that insurance companies aren't in the business of insuring high-risk activities for short periods.
They do cover high-risk activities ... but they have to be balanced by periods of low-risk as well.
The term of art is "selecting against the insurer". It's the same reason as to why you can't buy home insurance against bushfire just before your letterbox lights into flame! All home insurers are quite comfortable in insuring bushfire risk, but only on the proviso that you're insuring your home during the off-peak seasons as well.
So how do you solve this?
The solution is to work on solving problems not purchasing products and insure the risks in your business, not merely buy a piece of paper that says the magic words you need.
It's simply a matter of following my risk management philosophy and thinking about risk not insurance.
Example: Market stalls
If you sell your products at a market stall, the two major risks common to all stalls are:
- Injury to others visiting your stall; and
- Injury to others when consuming your product.
Even though you can purchase single-day or single-week 'market stall liability' insurance, it's a false economy. Short term insurances such as this either exclude products liability or are rendered useless if the 2. injury didn't occur within the short insured period.
Instead, I'd recommend looking at an annual public & products liability insurance to protect the business. And averaged out over the weeks you're operating, it'll cost the same or less than multiple one-off (and inferior!) policies anyway.
Example: Exhibitions and Displays
If you're an art community, you may hold annual shows displaying your members' art. Whilst each member should take personal responsibility for her own artworks, you may need to insure the artworks under your banner against damage.
Again, insurers don't typically want to insure high-theft-target items against loss in a short at-risk window only. You're not balancing out the high-risk periods with some benign low-risk periods.
Instead, I'd recommend looking at annual marine cargo insurance to cover the transport of the artworks (which must be professionally packed), and include an exhibitions extension to cover the displayed items and the stands / tables / banners / other expo paraphernalia against damage.
As before, we're making the risk far more attractive to insurers, and providing better protection for your group at the same time.
Advice not insurance
With decades of experience in no-nonsense risk management, I specialise in advising Australian small business in managing risks and appropriate insurance selection. Don't assume that business insurance is one-size-fits-all like the TV advertisers would have you believe. Save time and heartache by getting expert advice up front.