The world of insurance can be a huge headache for small business owners. Since getting your business off the ground is your number one priority, it may seem unimportant to get the proper coverage in the early days of your business. However, it is imperative to remember that even in the early days of operation, your company may run into some unexpected and costly issues. Having insurance, especially the right type of insurance, is vital for the future growth and success of your business.
What Insurance Should You Start With?
There are a lot of different types of insurance available out there. It is important when deciding which policy is right for your business to be cautious but not overly risk averse. Obviously, the more types of insurance your company purchases, the higher the cost of the premiums will be. Because of this, it is important to remember to only purchase the types of insurance that are or could be relevant to the operations of your business. This way your company is protected for anything your company has done, is doing and will do in the future. By not going overboard with the coverage, you will be able to save your hard earned money for other important things in the future.
A great place to start for small business owners is a Business Owner’s Policy. The Business Owner’s Policy is a package specifically created by the insurance industry to provide commercial coverage for small to mid-size businesses. The bundle usually includes general liability and property insurance at a reduced premium. The great benefit of the bundle is that additional types of insurances can be added on to make a simple payment plan for all of your coverage. The types of additional insurance policies and coverage that are available vary from insurance company to insurance company. But, common types include the addition of professional liability, workers’ compensation, health, disability and auto insurance.
How Do I Get The Right Insurance?
So after you know what types of insurance policies are essential for your company, it is time for you to start looking for the right insurance that covers your needs. Insurance policies cover certain amounts and pay out during certain occurrences. Because of this, it is important for you to understand how much and what exactly you are covered for. The last thing you want to be is paying for a policy that is not enough to cover your liability. Rather than read through all of the different policies and their contingencies, it is best to work with someone knowledgeable about the industry. Here, you have two options.
First, you can work with an agent within an insurance company. This type of agent can provide you with all the ins and outs that the specific company they work for offers in their policies. They may also be able to offer special in-house specials that are not necessarily available otherwise. However, you will need to work with another agent from a different company if you want to find the similarities and differences of another insurance company’s policies. The second option is to work with an independent broker. Brokers that specialize in commercial insurance can offer the best of both worlds. These brokers work with numerous companies and do the research for you. They provide you with the breakdown of benefits along with the premiums finding you the products you need. However, it is important to note that going the broker route may not be the fastest means. Brokers are aware of many more insurance companies than the average person and providing a thorough comparison to assist you may take longer than you need. This means helping the broker limit the search and/or time frame can keep everything running smoothly and on time. With a broker, good communication is key to getting the best experience.
Both options are viable for different types of people. If you would like a more hands-on approach, going with an in-house agent is best but, if you want the options presented directly to you, a broker is the way to go. Either way, insurance is an important part of keeping your companies running smoothly so do not forget to protect it.