The BizFilings blog covering business tips and trends.
5 Tips on Insuring Your Small Business
Published on Sep 28, 2012
Read 5 Tips on Insuring Your Small Business at 'Time to Start Up,' the small business blog by BizFilings.
By Jessica Sanders
Your small business, no matter how small, needs to be insured. If not only for you, but the employees that you hire on to make your business grow. From workers compensation to errors and omissions insurance, there are many choices to make. So, instead of choosing the first option you come across in a quick Google search, you want to consider a number of aspects including cost savings and your industry.
Get Industry Specific
Your business is likely at risk for any number of unique, industry specific needs; a contract company may want to invest in general liability however a trucking business will need commercial vehicle insurance. Therefore, to ensure that you are completely covered, you want to be sure you have all the right insurance for both your business, you as a business owner and your hard working employees.
Know the Policies
This seems obvious, right? However, too many business owners shop by price and rely on a good sales person instead of truly understanding what their policy holds. Instead of falling back on your limited insurance knowledge and a great sales pitch, be sure that you know what you’re being told.
Hire a professional: If you don’t want to hire an insurance professional, consider utilizing the knowledge of your attorney. With a familiarity of your industry and business, this person will be able to make sure you’re getting what you need.
Save Where You Can
Save is not a word that comes to mind when you think of insurance. From premiums to even higher deductibles, it seems like a necessary expense that comes as one size fits all. However, you have the opportunity to save with the proper precautions.
Professionals at Insweb.com suggest, “Reduce your loss risk with fire sprinklers, security systems and/or other safety devices. Many of these will lead to insurance discounts.” Check with your insurance provider to see how you already qualify and what other modifications you can make.
Though a number of insurance agencies monopolize this industry, it doesn’t mean the top dogs are the best ones for your business. Thus, it’s important that you look into each and every option. For example, local insurance agencies may be able to negotiate pricing and be more convenient in a time of emergency or financial burden.
Spend More to Spend Less
As a small business, your budget for insurance may be minimal. However, sometimes it’s the case that you can spend more up front to spend less later down the line. With insurance, there are a number of payments to be made, including deductibles and premiums, but these can work together for an overall lower investment.
Higher deductible: According to RateAlert.com, “… The higher your deductibles the lower your insurance premium.” If you don’t have the cash flow to start high, make your way there as the business grows.
Choosing the right business insurance can feel like a daunting task. However, it’s a necessary evil for each and every business, big or small. To be sure you make the right choice for you, your growing business and the employees that work for you, make educated decisions each step of the way.
Jessica Sanders is an avid small business writer touching on topics that range from social media to liability insurance and workers compensation. She is a professional blogger and web content writer for ResourceNation.com.