Running a business is accompanied by a wide variety of risks, but most of those risks can be mitigated by good insurance policies. Getting the right insurance policies, however, can sometimes be a headache. There are countless insurance companies all vying for the same target market, each offering a slightly different product. Here are a few simple suggestions that can help you land the right policies for protecting your business.
1. Research Policy Coverage
As a business owner, you already know the value of language. When it comes to purchasing insurance, the language of the contract is critical. Study the different terminology used by the competing insurance providers to better understand what each potential policy actually covers. The last thing you want as a business owner is to discover a critical part of your business has no safety net after it is too late. Remember that your insurance needs may also change as your business expands, so you should stay up-to-date on the terms of your current policies and what other providers are offering.
2. Treat Insurance Like Armor
The mark of a good insurance policy is that it is designed to protect you from financial harm. Business owners are doubly at risk of financial repercussions because they sell goods and services to the market. Even the most benign products can result in legal action should they be involved in an incident. This is why certain types of insurance are essential to modern business. For example, maintaining a good product liability insurance policy guarantees that your business will not be held liable for any property damage, illness, or injury attributed to the goods you sell.
3. Understand Insurance Costs
When you are just starting out, taking on a pricey insurance policy may seem unreasonable. Any business owner knows that you have to cut costs wherever possible to hit your bottom line. Unfortunately, if you cut costs by opting for the cheapest insurance option, you are likely to pay severely for it later. When choosing an insurance policy, always weigh its price tag against the value of its coverage. Insurance policies are one area of running a business that you are more likely to save money in the long run by investing more upfront. You obviously do not want to pay for policy coverage that does not apply to your business, but you should always maximize the coverage potential that is applicable.
4. Choose Industry Specific Policies
Insurance providers are businesses too, so it is only natural that they specialize more in one area of the industry. Depending on your business model, some providers will be a more natural fit than others. A provider that specializes in policies tailored to brick-and-mortar stores will probably not have the same quality of coverage designed for online warehouses. Always look for providers that focus on catering to your specific business model to get the best coverage possible. For example, an insurance provider that specializes in coverage for online businesses will usually focus on policies that cover issues related to cybersecurity.
5. Bundle to Save
Even though you should always prioritize the quality of coverage, you can still reduce the expense by bundling policies. When discussing potential policy coverage for key aspects of your business, talk to your insurance representative about bundling additional areas of coverage into a custom-tailored policy or combining multiple policies offered by the same company at a discounted price. Like any other business, insurance companies can be flexible when presented with the opportunity to make a larger overall sale. Opting to bundle your insurance can present you with the benefit of one policy covering multiple aspects of your business that would otherwise require multiple redundant policies.
6. Work With an Agent
Muddling through all of the potential insurance companies and their diverse policy options can be a hassle. As a business owner, your time is best spent doing what you do best. Consider working with an insurance agent to get the best policies while still maximizing your work potential. Just be aware that some agents are independent and will work with several different insurance companies, while other agents are contracted to only sell policies from one company. Hiring an independent agent allows you to take full advantage of their knowledge without being limited to one potential insurance provider.
The key for any business owner, large or small, is to choose the coverage that fits your specific needs. Even a policy provided by a reputable insurance company can be useless if it does not apply to your situation. Whether you do all the research yourself or rely on the skills of an agent, prioritize quality coverage that will keep your business legally and financially safe. The process of finding the right policy can be long and sometimes frustrating, but following these simple guidelines will make that process much easier.