When venturing into business, you must have a business plan right in front of you. In this plan, you factor in all the expectations in operations including production and marketing of your services or commodities. One of the things that small business owners tend to forget to include in their business plans is the need for insurance. Let’s face it, without a proper insurance cover; even a simple lawsuit can potentially wipe out your company. The question then is, how do you get the right business insurance solution to give you that much needed peace of mind?
Your Legal Requirements
Businesses that have employees under them are legally required to pay for certain insurance types such as unemployment insurance, workers’ compensation insurance, and in some cases, disability insurance.
Therefore, understanding the legal requirements presented by your form of business will go a long way into opening your eyes to the kind of insurance requirements you are to meet. Also, the state you are in may determine additional insurance covers you are supposed to procure so that you can run smoothly.
The Type of Business You Run
When it comes to insurance, you cannot copy and paste what your peers in the industry are doing. What is working for them may not necessarily be suitable for you. To get the right business insurance, you must look at the following:
- The Assets You Own – Knowing the assets you have a claim of ownership to and those that you lease will help you find the right policy cover.
- The Clients You Do Business With – Your clientele base and the areas they operate in may affect how much your business insurance agency charges you.
- The Nature of Your Operations – Different areas of work pose different risks. For this reason, you need to do risk profiling of various operations so that you can use this information to find the right insurance cover. Often, insurance companies will ask you this information so that they can determine the right package for you and the premium you will pay.
After determining your business specifics and the needs you have, you should now shop for available insurance products that fit your profile. Talking to insurance agencies that are established and have been in the industry for a long time such as DC Insurers, will help you know the range you are likely to pay in premiums.
When engaging the insurance agencies, ensure you give them all the necessary information. For instance, they may need to know your business structure, the nature of your operations, the duration you have been in business, your turnover, the property you own, and the size of your workforce.
If you find an insurance agency that specializes in the sector your business operates in, they can be useful because their products are more specific. Try at all costs to avoid general business insurance companies.
Other considerations you should make when looking for the right business insurance provider are the reputation of the company, how it handles its customers, their claim history and how many successful claims they have processed to date. These details will help you rank and determine who is in and who is out when choosing your policy provider.