Business Insurance

6 Factors to Consider When Choosing Small Business Insurance

By October 1, 2018 No Comments

Starting and running a successful business requires a lot of dedication and proper planning and that includes choosing small business insurance. Top of your plan should be to ensure that the business is adequately protected from a wide range of risks that face it every single day. For instance, you can wake up one morning and find out that a huge fire has engulfed your entire business. You can also face costly lawsuits from clients who claim compensation for losses or injuries they suffered in your business. With the myriad of coverage options available on the market, it is critical to do some extensive research before picking a policy. Here are the factors to consider when purchasing a small business insurance plan:

Choosing Small Business Insurance: Your Risk Levels

Insurance companies will first asses your risk levels before they issue a quote. The process of underwriting involves reviewing your application and the level of risks your business faces. Be sure to understand what kind of risks you are likely to face and decide whether or not to take coverage for all of them or for specific risks that you deem important. Some risks are difficult to mitigate but some can be easily minimized by taking certain actions. For instance, installing CCTV cameras and security alarms can deter vandals and thieves hence reducing the level of such risks, and by extension, reducing your insurance premiums. Smart fire and smoke detectors can also drastically reduce the level of fire risks.

Professional Guidance

Always speak to a knowledgeable insurance agent to help you understand the fine details of business insurance. Even after purchasing a policy, make an appointment with the agent at least once every year to review any changes that might have occurred in your business or in the insurance industry. For instance, you may have a bigger and more diverse workforce or you might have purchased more costly equipment or office furniture. All these changes should be factored into your insurance plan to ensure adequate coverage at all times. No one probably knows your business better than you do, so take it upon yourself to flag any major changes in your business during the discussion.

Employment Insurance laws

Every state has its own set of employment laws. If you have employees, pay close attention to the mandatory employment laws. For instance, workers compensation insurance is a requirement in most states. Other states, however, add more mandatory plans like disability insurance, loss of wage coverage, and so on.

Insurance Provider Accessibility 

Business insurance is designed to come in handy whenever a covered risk occurs. A good insurance provider should be easily accessible around the clock to answer any queries and process claims. Nothing can be as frustrating as trying to access your insurer in vain during an emergency. Check their available media of communication and ask them how they will respond to emergency situations when you need them most.

Premium Costs

Always cut your coat according to your fabric. As much as your business needs the best possible coverage package, consider your bottom line and take the most appropriate policy that won’t drain your accounts. Consider flexible policy terms, maturity time, and any available discounts that could save you a few bucks. However, be careful not to take an inferior policy that won’t adequately restore your business in case an insured risk occurs.

Geographical Coverage Region

Consider insurers that operate within your business’ geographical region. Risk levels differ from region to region, so the best provider that understands the kind of risks you face is the one that operates within your area. Additionally, an insurer with an office in your locality will respond faster during an emergency.

Your business might look healthy and flashy today, but calamities never come knocking at the front door. Avoid falling into a state of despair by purchasing the right business insurance coverage. A business insurance policy will not only hedge against risks of financial losses but will also give you peace of mind knowing that someone covers your back in case of any calamity. Before chosing small business insurance, contact us at Brashears Insurance Agency for any clarification or for a quote.