MYTH 6: “I can’t afford the ridiculous insurance levels they need for this contract.”
Here rests a myth which stops many smaller businesses from bidding for a government contract.
You see a contract which sits perfectly in your wheelhouse. You have the desire to win it. You have the experience and capability to fulfil it. What you don’t have is the seemingly exorbitant levels of insurance identified clearly as a ‘mandatory’ requirement. And quite frankly, the only reason your business would need such insurance cover would be to secure this contract.
But there’s no guarantee you’ll win the contract – there never is.
So, albeit reluctantly, you shelve your desire to win this piece of government business, and instead return to your private sector world.
I won’t waste too much of your time busting this myth because there’s not a lot to it.
Next time you consider bidding for a government contract which requires eye-watering levels of insurance cover, ask yourself this question:
“If I win this contract, can I absorb these insurance costs and still make a fair profit?”.
If the answer is yes, then simply:
Pick up the phone and contact an insurance company.
Ask them for a quote and have them note on the quote that you will execute this extra coverage should you be successful in winning (insert contract title).
Attach this quote to your submission.
Happy days, you’ve just met the mandatory requirement without negatively impacting your current finances.
The key here is providing the evidence – in this case, attaching the insurance quote. Miss this step, and you’ll be a non-conforming bidder and booted out posthaste.