We often go into business to start our own business, whether we buy an existing business or start one. This is the area of the business that we are most familiar with. We will be unable to know everything about many areas, including business insurance. You should not cut corners when it comes to your business insurance.
Small to medium-sized businesses may find business insurance confusing. However, you should be confident that you have enough coverage to protect all aspects of your business. These businesses can get insurance called a Business Owners Policy (BOP).
This package provides protection against all of your liability and property risks in one package. You can also purchase each of these coverages separately, if desired. Small to medium-sized businesses with similar risks are best served by business insurance packages. A larger company will usually customize its policies to fit their needs.
Small business insurance packages would include the following:
1. You would need to ensure that you have sufficient stock and insurance coverage for the property. You would need to name a value for basic stock that a business normally carries. You should nominate a value if you have peak periods like holiday trading, where you keep extra stock. Disasters are not likely to strike at normal trading hours.
2. Business interruption insurance. This covers income loss due to fires or other natural disasters that disrupt the business’ operation. You may also be eligible for this insurance to cover expenses incurred while your business is being operated from temporary premises.
3. Liability protection will protect your business from any injury or damage that you, your employees, cause to others while your business is in operation. Defective products, faulty installations or services can cause injury to property or people.
These types of business insurance packages do not cover professional liability, worker’s comp, or health insurance, as well as auto insurance. These areas require separate policies.
A broker or independent agent can make a big difference in your business. It will be easy to get to know your broker and to feel less pressure to do business with them. They will also know your insurance needs and make sure you have the right coverage. You may not be aware of the areas that you need coverage.
Your broker will need to be informed about any changes in your business such as downsizing, expanding, or hiring more staff. This will help you to choose the best insurance coverage for your needs.
Ask about higher deductibles. Higher deductibles can help you save money on your insurance premiums. The higher the number, the lower the cost. This could be a false economy depending on your situation. Make sure to understand everything your broker says about this aspect of your policy.
There are other ways to lower your premiums, so make sure you follow the recommendations of your insurer regarding workplace safety and disaster preparedness.
It is important to find the right insurance for your business at the right price with the right coverage.