Tips to consider before you buy small business insurance
Buying small business insurance can be a frustrating experience if it is not approached in the correct way. You are obviously curious about what that way is otherwise you would not be reading this short article. We will touch on the basic things that you will need to understand, but if there is a section that is over your head take the time to research it and learn more. The number one thing to keep in mind is that the more educated you are on the subject, the better off you will be.
Types of Small Business Insurance
There are several options that will be made available to you once you start looking around. Some of them are compulsory, which means that they are required by law. It is important to know what the regulations are in your particular area before committing to any policies. Check with your local business bureau or courthouse to get a printout on what you need.
- Workers Compensation: This policy is required by all laws if you have any employees working for you. Keep in mind that if you have independent contractor working for you, they will have to carry their own policy. And as the owner, you will need a separate policy as well. This is a type of coverage that deals with injuries, accidents, or deaths, which may happen to any of the people that work for you.
- Loss of Income: There are various options that can be found under this type of insurance. What it boils down to is that it covers you, as a business owner, in case you are injured and cannot work for a specific amount of time.
- Asset Insurance: There are many variations in this as well. Bottom line is that it will protect your business from theft, damage, or any other type of loss. Depending on the policy that you choose, of course.
- Accident and Liability Insurance: This is an important type of policy because it protects you against accidents or lawsuits due to any number of things. Your best bet is to compare the various coverage types at the iSelect small business insurance platform to make sure you are covered.
- Technology and Cybercrime Insurance: If you store any personal information on your clients or customers you will want this policy to cover your business in case a hacker gets into your system and uses the information for criminal activities.
Know the Industry Specific Risks
You will want to do some research and find out what the main risks are for the type of business that you have. This is where education and knowledge come in to play. Every industry will have there own specific risks associated with them. For instance, if you offered bookkeeping services, you would not need a policy that covers products, but you will need a policy that covers cybercrime and liability.
Decide on the Deductible Amount
As with all other types of insurance, the higher that you set the deductible, the lower your premium will be. It is extremely important to remember that the deductible amount that you set will be how much you will be required to pay out of your own profits before the insurance carrier will cover any expenses on a claim that you file.
Final Thoughts
These are some of the biggest aspects of buying small business insurance that you need to know about. As stated earlier, if there is a section that you need to know more about, do a quick search and find out. You can always go old school and talk to a local agent or attorney to find out what you need, and then you can go from there.