Discovering Your Business Insurance Needs

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If the great recession has taught businesses anything it is to watch excess spending. Businesses have learned how to look at every line item in the budget to find excesses and to see if there is any room to cut. Insurance is definitely one of those line items where the business needs to see if it has enough and at the right price. While one can look at different policies or rates, business insurance itself is nonnegotiable. Insurance protects businesses by laying-off risk of unforeseen circumstances to another party. Thus, protecting the business from calamities which could quickly sink it, yet such protection does come at the cost. The following are some ways one can lower insurance costs while at the same time remaining fully protected.

Property Insurance for Your Business

Insuring the property of your business is good business. There is any number of unforeseen circumstances which happen every day, we just do not believe it will happen to our business. However, as we watch the evening news one could ask if that was to happen to my business what would I do? Having insurance for your property will answer that question every time insurance will cover it.

Business insurance for your property should extend to:

Any real estate and physical structures should the business own instead of lease. -Physical and personal property for things like office furniture and supplies, technology, business equipment, etc. -Liability for any accidents that happen on the property. -What the insurance industry sometime terms “Acts of God” which are things like floods, tornadoes, high winds, earthquakes, etc. -Revenue lost while the business is closed due to circumstances like those mentioned above.

Business insurance is customized for each policyholder with the idea that the policy covers exactly what the business needs. However, assuring what the business needs are is the responsibility of the policyholder. So, every business should be fully aware what is and is not covered in their insurance policy.

Further Insurance Policies for Business

Insuring your business does not end with only covering the business’s property. There are also other forms of insurance a business needs to consider. Car insurance is obviously needed if the business has company vehicles, but automotive coverage may be needed if employees use their own vehicles for business purposes. Even the owner (including sole-proprietors) need to check their car insurance policy to see if its covers usage for work. Health coverage is another necessary form of business insurance especially in the US with the new healthcare legislation that was passed in 2010. Employers are or will be responsible for their employee’s healthcare under certain conditions. A quality business insurance agent will be able to discuss the details of these and other forms of insurance needed for you business.

The following is some advice when looking to insure your business:

Join an applicable trade association. A trade association will often offer group insurance that your business can join for lower rates. Plus, any insurance agents the association recommends will be knowledgeable about your business’s industry. Making sure it is fully covered at the lowest cost. -Like any shopping venture, compare. It is always good policy to compare coverage among companies, sometimes even getting quotes from different agents associated with the same company. Do not only compare costs, but also what is included in the coverage. -One question which is difficult to figure out until it is too late is how much coverage is enough. The more coverage, the more expensive it will be. So, check for your industry averages for things liability settlements, lost income due to unforeseen circumstances, and property loss averages. -Some larger companies will bundle all your business insurance policies to get you a lower rate. This is something to look into but follow the earlier advice about comparing costs and coverage.

As hard as it is to keep a business going, the last thing an entrepreneur needs to worry about is the unforeseen. Having business insurance taken care can allow a person to focus on the more urgent parts of their business.

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