9 Things to Know About Business Insurance
When looking into business insurance, there are a few things every business owner should know. Not all insurance policies are alike, and many people mistakenly buy more or less insurance than they actually need. In order to ensure that your business, no matter its type or size, obtains the necessary coverage for its specific needs, you need to brush up on the top nine things to know about business insurance.
Understanding insurance can seem overwhelming because insurance policies, payment plans, and coverage options can be confusing and hard to navigate. It’s apparent that insurance is needed to protect important possessions, investments, and even people, so going without a plan should never be an option. Business owners should know the following nine things before buying insurance or modifying their policy. When the right people are properly informed, it can make all the difference between success and hard times.
1. You Have Options: Many people buy insurance policies without understanding the fine print of their purchases. They may find themselves with too much coverage or not enough. This could mean that they’re pouring money into something that they don’t use or need, which could end up costing the business hundreds or even millions of dollars over time. Or they could find themselves in a situation that requires coverage where they have none. For example, a work place injury that is not covered could result in a lawsuit that could cost the company a lot of money. It is important to explore options before committing to a policy that may sound good but really isn’t a great fit.
2. You Need To Know Your Business: Does this business interact frequently with customers and clients? Is there constant traffic in and out of the office building? If the answers to these questions are “yes”, public liability insurance should be a part of the business’ coverage plan.
Public liability insurance protects the business from claims for compensation in the event of an injury or property damage.
3. Secure Your Employees: Employer’s insurance is required by law to protect any employees that may work for the business. Whether it is a part-time, full-time, short-term, or long-term engagement, employer’s insurance covers the business from lawsuits that may be filed following a work-related illness or injury.
4. Focus on Property Protection: Unless the business is held online, the business property needs protection as well. This is another case in which being under-insured can be incredibly dangerous. Protect the property and, by extension, the public and employees who frequent it.
5. Your Industry Matters: The type of business is an important factor for insurance agencies.
Browse coverage for the right business type to ensure that any special plans or policies are included.
6. Keep the Right People Updated: Businesses are always changing. Due to this consistent fluidity, it is important that a business insurance agent should always be kept in the loop concerning business changes. He or she may be able to find savings and other opportunities for reduction of liability by keeping an up-to-date policy.
7. Always Shop Around: It won’t be easy finding the right policy right off the bat. This is why shopping around is imperative when it comes to obtaining business insurance. Different agencies offer different luxuries, so explore all the options before settling down.
8. Always Include a Health Policy: When working in a business with fifty or more employees, health insurance is necessary. Don’t neglect worker’s safety and well-being by opting out of this essential add-on. Discuss healthcare coverage options with an insurance agent to find an affordable and effective policy.
9. It’s Better to Have Than to Have Not: Again, foregoing business insurance completely is never a good idea. If it seems expensive or a little overbearing, the policy may simply need an adjustment. The bottom line is that it is always better to have business insurance than to be without it. The risks you take by not properly insuring your business (which include losing your business entirely) are too great when compared to the reasonable costs of many plans.
While these nine points are a good start, it is far from a complete overview of the information you’ll need when deciding on a business insurance policy. The easiest thing for busy business owners is for you to contact an experienced business insurance agent to walk you through your different options to find the right policy for you and your business.