It’s been a rough year for small businesses in terms of insurance, from COVID-19-related losses that weren’t covered to filing claims for fire damage and looting during the riots of last year. So, there has never been a better time than the present for modern small business leaders to rethink their business insurance and make sure that it’s up to the task. After all, your business is the most valuable asset that you own, so it’s important to make sure that it is protected as much as possible with the right business insurance policy.
Be Familiar with the Coverage You Need
One big mistake that business owners make is failing to understand what their business is covered for in advance and being unaware of what’s involved with filing a claim. This situation leaves you at risk of only finding out the claim requirements during a catastrophe – and if you end up finding out that you’re not covered for whatever has gone wrong, you’ll find yourself in a troublesome situation. If it has been a while since you purchase business coverage, be sure to regularly take the time to go over your policy, review what’s covered and the claims procedures, and make sure that it is still the right fit for your business. You’ll usually find this information with your proof of insurance and most insurers provide an online account that you can easily access to get all the details.
Invest in Extras
When buying insurance, it can be tempting to overlook certain extras in order to save money, or if you feel that it’s an unlikely risk. However, when it comes to getting insurance for your business, the experts recommend taking a cautious approach and getting as many extras as you can afford. It can be risky to make assumptions when getting insurance for your business, such as opting out of theft coverage because you don’t believe that your employees are the type of people that could steal from you. And this might be true, but if you hire somebody who does end up taking from your business, the losses will not be covered by your insurance policy.
Think Ahead
A smart approach to planning for your business insurance should go beyond the present needs of the business, according to experts. Business leaders should also think about the ways that their personal and professional insurances might overlap, along with any insurance options provided for employees, such as life and health insurance. It’s also a good idea to make sure that insurance needs are covered as soon as possible, even if it seems premature at the time. For example, the earlier you get coverage for the business in the event of the sudden death, departure or disability of the owner, the better, since you simply don’t know if and when these events might happen.
Don’t Make Cost a Top Priority
While keeping to your budget is an important part of running a business, when choosing the right insurance policies for your company, it’s important to avoid prioritizing cost over the coverage level. It can be a risky move to only purchase insurance based on what you want to pay before tailing the policy to stay within that budget. Instead, begin with conducting a risk analysis that takes your potential exposure and risks into account. If you do try to reduce the premium cost, then it’s equally as important to consider how much the insurance coverage you get as a result might be impacted by that, and determine whether or not it is actually worth the amount you’ll save.
Consider a Package Deal
When it comes to insuring your business, there are certainly many different must-have and nice-to-have policy options to consider. The best way to ensure that you get all the coverage you need will often involve getting a package deal. If your business requires several different insurance types, it can sometimes be cheaper to bundle them all together in one policy from the same company. However, bear in mind that this is not always the case, so it’s worth spending some time researching and shopping around to make sure that you’re not losing out on savings by doing so.
Insuring your business is crucial for protection against anything that could go wrong. Whether you’re revisiting your current policy or getting insurance for a new business, keep these tips in mind.
