How to Select the Right Type of Small Business Insurance for Your New Venture
Starting a new business can be one of the most exciting times of your life. At the same time, it can also be very daunting if you have not already spent some time in the world of business. There will be many things you’re about to learn, both professionally and personally about the way that business works for you. But the one thing that is going to apply to every new business venture is the need for insurance. You’re probably already familiar with some forms of insurance like home or automobile, so what will you need to do if you’re considering small business insurance?
Assess Your Specific Needs
The most important step you will need to take is figuring out exactly what your business requires for insurance purposes. All businesses, even small ones have some big differences from one business owner to the next. If you’re running a small corner store with a few employees, thats still going to have very different operational requirements from someone that is conducting a small marketing company from home. The corner store will need to worry about insurance coverage for employees, and the possibility of product or property liability if something happens to a customer at the store, while a home office doesnt have this same concern.
How much you pay for your insurance will be directly affected by the type of business you have and business activity you conduct. Make sure you dont pay for more than you need to.
Take An Account Of Your Assets
If you’re getting insurance, you need to know what you’ll be insuring. Go over the things vital to your business, whether they are computers, welding equipment, baking tools, desks or other furniture or rent. You will need to bring these items to the attention of an insurance company to make sure that the things you want protection for actually get the coverage you need.
Investigate Your Options for Premium Reductions
There are ways to reduce the cost of the premiums you pay. With auto insurance, for example, premiums can go down if a teenager presents proof of graduation from a certified driving school. Show that you have burglar alarms installed, sprinklers for fire or even just rubber mats on the floor to increase traction and reduce the odds of a slip and fall for customers. If you can prove you have measures that visibly reduce the risk that your business is exposed to, this can result in a reduction in premiums.
Consider Your Worst Case Scenario
The whole point of insurance is to obviously give you some measure of financial protection in the event that something goes wrong. But what can go wrong with your particular business? For example, while its generally agreed that most businesses will require some kind of liability insurance in case a customer or client gets injured on premises, theres more that can go wrong.
If you provide a service to clients, for example, and the client accuses your service of making a mistake that costs that client profit, there is error/omission insurance that can provide coverage for this particular situation. If your business is going to be interrupted and you will be unable to conduct it for some time and would normally incur a loss as a result of this, business interruption insurance also exists.
As with any new venture, you need to carefully investigate all your opportunities and contingencies. Then make sure you get good guidance from an experienced professional that can translate your specific business needs into a comprehensive small business insurance package that gives you the protection that will effectively help you if you need it.