Does your business have insurance coverage? Insurance can save your business from financial losses and legal liabilities in case of an accident. Read the excerpt below to learn the various considerations you should make when getting insurance for your business.
Know Your Business Needs
What is the scope of your business operations? For instance, if you run a retail store, you would want an insurance policy to protect your stock, employees and customers. As such, you should consider employee, public and general liability coverage. If you run a private practice offering services such as conveyancing or healthcare, you need professional liability coverage to protect you from customer claims resulting from errors or omissions. On the other hand, companies in the manufacturing business need product liability insurance to provide coverage from product defects.
Choosing an Insurance Company
Hire an insurance broker to help you choose an appropriate insurance cover for your business. An experienced broker will evaluate your business operations and provide crucial advice regarding the insurance covers you should consider and which insurance company will give the best deals. Further, insurance brokers have long term relationships with insurance companies and can, therefore, negotiate a good deal.
Below are some tips to help you choose an insurance company:
- Check their specialisation. For instance, some insurance companies will give excellent motor insurance, while others may specialise in general liability.
- Choose a company that has a reasonable claims policy. It should be easy for you to make a claim and receive compensation.
- The insurance company must be financially stable. Otherwise, they may be unable to pay compensation.
- Look out for companies that give regular updates, have 24/7 customer service and an easy premium payment method.
Amount of Coverage
The insurance company will examine the amount of coverage you require. Typically, large businesses need more coverage than small businesses. However, other factors come into play when calculating the coverage. They include the amount of floor space your business occupies, the number of customers that visit the premises, the number of employees and the susceptibility to natural and humanmade risks. The company will also examine your safety standards. For instance, does the premises have fire safety equipment? Do employees wear protective clothing while working at elevated places? The insurance company will then determine the amount of premium you should pay.
You must update the insurance company of any changes you make in your business. For instance, if you move into larger premises or employ more workers, you will require additional coverage. Pay your premiums on time to avoid penalties or nullification of your policy.
Contact a company that offers business insurance to learn more about your options.