Small business owners don’t take business insurance as seriously as they probably should. Some of them don’t buy insurance at all while others buy inadequate plans without comprehensive coverage. A recent study revealed that only 19% of the small business owners were confident that their plan covered any mistake that they might make and the consequent lawsuit. Business insurance is vital for the survival and growth of your company. Here are some tips to help you find the right one:
Determine your Risks
Anyone who has dealt with insurance knows about the underwriters. These are the people who decide what kind of premium and deductable you might need to pay. The premium is the general price of your insurance while the deductable is the amount that would be deducted at the time of remittance. These are inversely related so if the premium is high, the deductable will be low.
You need to decide which the better deal is for you. Would you be willing to pay higher premiums to make sure that you have the highest possible claim amount when you’re in trouble? Or would you be willing to pay higher deductions and lower your premium rate? You need to decide what kind of risk you’re willing to take.
Business Owner’s Policy
You can purchase different insurances based on different needs and requirements. For example, you can buy one insurance policy to cover your employees and other to cover your business vehicles. However, this can lead to higher insurance premiums. You have the option of buying a Business Owner’s Policy that would cover all the basic requirements of a business. This insurance would cover the following:
- Business vehicles
- General Liability
- Business Interruption
- And much more
As you can see, the business would be covered quite comprehensively by a business owner’s policy.
Now that you’ve determined your needs, you need to look for the best insurance policy for you. There are several independent agencies like the National Federation of Independent Businesses, which provide unbiased and comprehensive information about insurance policies and providers. It’s very important to find the right insurance for your business so that you’re well protected in the event of a loss. There are different kinds of policies for different kinds of businesses; there are different premium rates, and different standards of customer service. You need to research well before you choose because you’ll have a long term relationship with the business provider. It would be a good idea to take care when you’re choosing one.
Use an Agent
If you don’t have the time or the inclination to do your own research, and that’s understandable, you can hire a professional. There are several insurance brokers that would hunt down the best policies for your needs. They have experience with the industry and would be able to advice you on different matters related to insurance.
You can find these commercial insurance brokers on Hotfrog US’ Business Insurance page. That can be a good place to start at.