Being a business owner comes with a lot of responsibilities. There are so many things for you to think about, from hiring and budgeting to marketing, branding, development, and so on. One of the most important aspects of all to consider is protecting your business against unforeseen issues and problematic eventualities, and business insurance can be of great assistance with this.
The best business insurance plans offer the protection you need to cover all kinds of unexpected costs that might occur if a customer gets injured, your business property gets damaged, or your workers get hurt while on the job. However, it’s important to find the right insurance plan to meet your needs, and this guide will cover some key questions to consider before buying any business insurance of your own.
What Types of Insurance Are Available to Small Business Owners?
One of the first things most business owners want to know about business insurance is what types of insurance policies are actually available for them to choose between. There are several different types of business insurance, and the right type for you will depend on various factors like your working location, industry, and general risk exposure.
- General Liability – General liability is the fundamental form of business insurance that almost every business needs. It offers coverage for any injuries to customers or damage to customer property that may occur at your working premises.
- E&O – E&O stands for errors and omissions, and this is another common type of insurance policy that is designed to cover you and your staff from any claims that customers might make against you. It’s a good option for any company that interacts with customers on a regular basis.
- Workers’ Compensation – Your employees might also get hurt or ill while working, and this form of insurance pays out if such an eventuality occurs, protecting you from any liability.
- Business Owner – A business owner policy is a good choice for small business owners who are just starting out, as it covers liability and property damage all in one package.
How Do I Protect My Property?
In order to protect your business property, you’ll need to take out an adequate form of insurance. You can consider commercial property insurance, which is designed to cover your business’ assets and property against things like storms, criminals, and fire. You can also get this as a part of a larger business owner policy.
How Do I Submit a Claim?
Before taking out any business insurance, it’s important to understand the claims process, as this can vary from provider to provider. Usually, you’ll have to contact the company’s claims department and report the incident, but make sure you speak with the insurance agent to find out more about how the process works so you know exactly what to do when accidents happen.
What Affects My Insurance Costs
Many people want to know how business insurance costs are calculated. Well, there are actually a lot of different factors that can be taken into account, and one business’ premium might be very different from that of another. Here are some of the most important factors:
- Type of Business – Different industries have different risks. A trucking company, for example, is more likely to have auto accidents and injured drivers than an ice cream parlor, so your line of work can have an impact on insurance premiums.
- Number of Employees – If you’re running a small business with just a few members of staff, you won’t be expected to pay as high a premium as a company with hundreds of staff members.
- Previous Claims – Your company’s claim history can also determine the cost of your insurance. If your business has a good track record of avoiding injuries and accidents, you’ll get a cheaper price, but if your company has had to make many claims in the past, insurance providers will charge you a higher rate.
- Risk – There are various ways in which risk exposure can be calculated for a company, and this can also affect insurance costs. If your business welcomes many customers each day, for example, there may be a higher chance of injuries occurring than there would be in a simple office environment without many outside visitors.
Are There Any Discounts?
Budgeting is really important for small business owners, and you always need to look for ways to be efficient and economical with your capital. Fortunately, there are actually several great ways to save on your business insurance too, with discounts provided in a range of situations. If you bundle policies together from the same provider, for example, you may be eligible for a price cut.
You can also get a discount by investing in safety equipment to make your workplace a safer place to be, installing smoke alarms and carbon monoxide detectors, setting up alarms and security measures to keep criminals away, and so on. Speak with your chosen provider to learn more about discounts and see what you can do to save money on your business insurance.
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