Choosing Insurance You Will Love

« Back to Home

Insurance Tips For Small Business Owners

Posted on

All businesses need insurance coverage. However, small, medium, and large businesses insurance needs differ. These businesses face different risks and have different assets. Below are some insurance tips for your small business.

Understand Your Risks

Commercial insurance protects your business from different risks. Evaluate the risks and buy insurance coverage that covers those risks. The evaluation is necessary since business risks vary by industry, location, size, and number of employees.

For example, a small business that operates mostly online and has a single office might not require as much property coverage as another one with multiple offices or sprawling premises. You might buy or ignore crucial coverage if you don't evaluate your needs.

Consider Insurance Packages

Insurance companies have insurance packages for different businesses. An insurance package comprises different forms of coverage in a single policy. A good example is a business owner policy (BOP), which usually includes property damage, business interruption, and liability coverage. Insurance packages typically cost less than multiple individual packages.

Maximize the Discounts

Insurance is necessary, so you should not avoid crucial coverage to save money. A better cost-saving measure is maximizing all the discounts you qualify for. Discount examples include:

  • Safety discounts for those who take good care of their properties
  • Bundling discounts for those who buy multiple policies from the same carrier
  • Group discounts for members of specific organizations or businesses in specific industries

Research the discounts and ask for the ones you qualify for. Compare quotes from different carriers since the discount types and amounts vary.

Understand the Small Print

An insurance policy is a legal contract between you and the insurance company. Don't buy a policy before reading the small print, also known as the terms and conditions. The policy terms will describe the covered risks, exclusions, and coverage limits. The policy also details mistakes or actions that can invalidate your policy.

Regularly Evaluate Your Insurance

Your business will change over time, so evaluate your business and insurance and update your coverage accordingly. For example, you may acquire more assets as your business grows, and more assets require increased property insurance. You may hire more employees, move to a different location, or get a bigger office. All these changes call for insurance evaluation.

Hopefully, you have adequate insurance that adequately protects your business. Consult a business insurance agent to evaluate your policy and advise whether you need to update your coverage. An agent should also be your first port of call if you are just starting a business and need insurance coverage.