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How to Insure Your Small Business

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Is your business properly insured? Whether your business is just starting out, you’re a small business owner or you own a large business or corporation—all types of businesses need to be properly insured. The risks are different for each business. However, every business needs to defend against those risks by being properly insured. From personal experience when I began my marketing consulting business, getting my business insured seemed like a daunting task. I received free counsel from Legal Zoom and found answers to many questions and then connected with an insurance agent who assisted with the process. This article will discuss four steps to follow to insure your small business.

Ascertain the Possible Risks Affecting Your Business

Business owners need to take stock of the risks that their business might face. For example, if you are a manufacturing company and employ assembly line workers, personal injury risks are possible. Public liability is a risk all business owners usually face because a customer or client could get injured on your premises. The exception to that general rule is if you are a consultant and don’t have clients come to your place of business, which might be your home. Other risks could be the following: fires, natural disasters, theft, injury on employee etc. The main reason you need to ascertain the risks first is so that you can figure out which type of insurance company to work with. If-Insurance.com has a short, but concise article on Managing Liability Risks and shares the basic differences between coverage for—general, product and contractual liability.  


Seek Out the Right Insurance Agent for Your Business Needs

For my personal experience, we wanted to work with the same insurance company for all of our coverage purposes—home, auto, personal property and business. However, the agent we had already covering our home, auto and personal property policies, did not handle business liability. Our agent gave a referral and I contacted this person to get the coverage for our business that we needed.

Once you have figured out the risks your business specifically faces, you can begin your research to find the right insurance agent for your business needs. There are a wide variety of insurance agencies to choose from. However, you need to do your homework because not all companies cover all types of risk. If you can find one agency that handles all the coverage you need, that is the best option. Many times you can get discounted prices if you have multiple policies with one agency. I was able to receive a referral from my own insurance agent. However, if you can’t get a referral, be sure to check ratings on various review sites like GlassDoor.com for insurance agent reviews.

Prioritise Your Specific Coverage Needs for Your Business

It is a fact that insurance coverage can be expensive. However, when you think about the risk factors involved and the amount of money you could lose if you were sued—paying for insurance seems like a minimal expense. Make a list ranking your coverage needs in terms of the highest risk and down in descending order. I’m big on lists and staying organized and within budget. Making such a coverage priority list will let you know which one is the most important coverage and what fits into your budget. Once you have the list, you’ll also be able to eliminate unnecessary coverage possibilities from your policy. There’s no need to pay for coverage that you don’t need. The U.S. Small Business Administration offers some helpful information on general liability coverage and what is the right coverage for your business.  

Complete the Process and Finalise Your Coverage Package

This was the part that gave me great peace of mind. The coverage was nearly in place and all I had to do was finalise the process. Premium payment plan options are put into place. The liability coverage for my consulting business included a yearly payment plan. Now I operate in my business knowing that I am protected against loss and all other cases of liability.

Obtaining insurance coverage for your business is a simple task if you follow these four steps. The process must always begin with targeting your risks. Then you should seek out a reputable insurance company or independent agent. Once you find the right company, you can prioritize your coverage needs so that you are only insured for exactly what you need. The last step is the best one. Simply finalise the coverage and get to work in your business!