Every business needs insurance, but not all need the same policy. Here are some tips for finding the right business insurance.
No two businesses are alike. Similarly, no two share the same risks and threats that can impact the business’ future, finances, and staff. From fire to fraud to dishonest employees, your business insurance should provide the right policy to suit your needs and cover your exposures. Therein lies your dilemma: you can go broke keeping your company secure.
Buying insurance can be a frustrating process for business owners. Finding the right policy for your business can feel like you’re looking for a needle in the haystack. Giving up and settling for a mediocre policy can do more damage to your business than it can good.
To get you started on buying business insurance, here are the top tips to help you find the right coverage for your business:
Understand Your Risks
If you’re a small or new business, you may not believe you have risks, but you do! Know the risks that are evident in your company, which could include having a property in a flood zone, employing hundreds of employees, maintaining heavy-duty equipment that could cause injuries, and regularly having guests on the property. Additionally, if your business uses digital data or operates a vehicle, cyber liability insurance, and commercial auto insurance will need to be purchased, respectively.
Catch Up on Coverage
Before you buy a policy, learn about the different types of coverage available. You might need general liability coverage, property insurance, workers’ compensation, and employment practice liability insurance, and you’ll want to understand what coverage is best for you and how it will protect your company.
Know the Limits
Be sure that your insurance policies have limits that are well within your budget and asset protection. If your deductible is too high to pay out of pocket, lower it; if you can afford to pay more as a one-time expense, raise your deductible to save a few dollars every month.
Don’t Buy Just to Comply with a Contract
Buy insurance to protect your business! It’s not uncommon for business owners to select the first policy that they see online. However, this policy may mean that the limits are too low or that the coverage is insufficient – leaving your company in a less-than-ideal situation after a disaster.
Assess Every Year
As your business grows, so can your risk. You don’t want to be caught underinsured in the event of a claim. Perform an annual insurance review to keep your business protected.