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Buying the Right Business Insurance

Buying the Right Business Insurance

Business insurance is crucial if you are to protect your company from unforeseen forces in the future, whether they take the forms of fraud, fires, floods, plumbing problems, or a whole host of other potential issues. However, buying the right business insurance is rather difficult, as you need to know exactly what your business is most vulnerable to. Although you could buy an expensive catch-all policy which covers everything under the sun, the premiums may bankrupt you before you even get going!

So how do you choose the right business insurance? Here we offer you some advice.

Think about your specific risks

According to various professionals who have worked in/with the insurance industry, you mustn’t give in to exaggerated fears, but fears which make sense for your industry of choice. Before you go looking for business insurance, do your homework on what perils and risks businesses in your industry usually face. This allows you to base your policies on existing data, meaning it is more likely to be relevant to you one day. For example, if you’re opening a coffee shop and you find that a lot of coffee shop businesses have to claim for problems with their plumbing due to enhanced water usage, be sure to include this in your policy.

Belinda Pillow, a former insurance salesperson, recommends that you call your relevant trade association. She explains: “ask for any risk assessment tools for, papers on, or expert opinions about your particular industry.”  This information should guide you toward common types of coverage which are commonplace in your industry, providing you with good guidelines for your own coverage. Nevertheless, there can always be loopholes and confusing jargon buried within business insurance policies, so be sure to speak to an agent or legal advisor before signing off on all of the terms.

Cover yourself for the basics too

Basically every business requires workers’ compensation insurance, although the guidelines differ slightly from state to state, sometimes excluding smaller businesses. Workers’ compensation covers things such as rehabilitation, lost wages, and medical expenses if one of your employees injures themselves in your workplace. Furthermore, in the unlikely event that they die on the job, it will pay death benefits to their named beneficiaries. You don’t necessarily have to cover yourself too, but it’s probably a good idea, and it’s usually very cheap to do so.

Also remember to purchase property insurance, which protects buildings and contents, and is crucial for smaller businesses in times of disaster. Bear in mind, however, that some things such as “acts of God” and utility failures may be excluded from this policy. You should also purchase general liability coverage if you can, as this protects you if a member of the public injures themselves in your business and sues you, with the policies usually covering you for costs up to $1 million.

You can also get business insurance policies which feature a combination of these property and liability insurance models, providing you with a basic umbrella business policy. However, as with any policy, you should be sure to check the wording and confirm that there aren’t any hidden terms or clauses which could be difficult in the event of a claim.

Buy from an independent agency

Buying from an independent insurance agency means that you can shop between multiple carriers, looking for the best rates and coverage options. This is a great way to look for business insurance, as you are working with an unbiased party who can offer you bespoke advice and compare various deals from different insurance providers.

Insurance agencies also have the knowledge and expertise to explain different policies to you and explain why one policy may be more valuable than another despite not seeming so on the surface. Independent agencies are also likely to have experience working with other businesses in your industry, giving them a good idea of what kind of protections your business requires in order to operate safely and not go broke in the event of a claim.

If you’re looking for business insurance which is right for you and your industry, contact us today! We have years of experience in matching businesses with their perfect insurance policies, putting the busy minds of entrepreneurs at ease!

Make Your Small Business Better by Avoiding These Mistakes

Make Your Small Business Better by Avoiding These Mistakes

Being your own boss and starting a small business always sounds attractive as a prospect, but few people have the business acumen and work ethic necessary to make a small business survive in the long term. Many entrepreneurs fall into some common mistakes when starting out, and here we have highlighted a few of the most common!

Not networking

One of the most essential aspects of business, and life in general, is meeting people. It doesn’t matter how independent you think you are – we always rely on other people to keep us going in our times of need. Networking is thus one of the easiest ways to meet future business partners and perhaps even secure major deals.

Having a subpar phone system

If your customers are subjected to a terrible phone system when they call you up, it’s more than likely that they’ll abandon your company in search of someone better-equipped with better customer service. When your company is new and small, you can’t afford to lose out on those initial customers – a decent phone experience can enhance their confidence in your company and see them singing your praises to other potential customers.

Not hiring an attorney

Contrary to popular belief, you should seek legal help from the inception of your business – not just when you’re facing legal troubles. Having an attorney on hand as you set up your business allows you to ensure that you aren’t making any mistakes which could land you in hot water down the road. Accidentally or unknowingly breaking federal/state laws when setting up your business could see it collapsing before it has even begun, something which no entrepreneur desires.

Not delegating tasks

You may feel the need to be a one-man-band and do everything yourself, but you should avoid doing this if possible. Once your staff is well-trained enough to deal with issues and operations, delegate tasks as appropriate, allowing yourself to relax from time to time. If you try to tackle an entire business’s problems by yourself, you’ll probably spread yourself too thin and do a poor job, perhaps even leading to a climactic burnout. Delegating tasks to your team shows that you trust their abilities, especially if the tasks are complex or important. Although it may be difficult to let go of your inner control freak at first, it’s an essential step of running a successful business as it grows.

Being Underinsured

Alas, not having adequate insurance protections in place could be catastrophic for a business of any size. Although larger companies may have backup funds at their disposal if really necessary, smaller businesses could be completely wiped out if they get taken by surprise and don’t have a decent insurance policy to back them up. Be sure to review your insurance policy and make sure that it reflects the ever-changing needs of your business.

If you’re a small business owner and you’re concerned about insuring your company’s future, get in touch with our team from a free consultation over the phone today!

3 Tips to Control Commercial Insurance Costs

3 Tips to Control Commercial Insurance Costs

We all need insurance, but it is nonetheless expensive. Commercial organizations require good insurance in order to survive, as they need to be able to weather any unexpected storms which may come their way. Whatever the size of your organization happens to be, it is essential to minimize your insurance overheads while remaining suitably protected. Here we offer your 3 tips for reducing commercial insurance costs!

1. Track incidents

You should track your incidents, even if no formal case arises from them. You may feel like you should only track claims which have become a case of their own, but incidents need to be tracked with insurers too. For example, if you have a shop and 5 people slip on one of your aisles, but only 1 decides to sue, not documenting the other 4 slips makes it appear as though it was an isolated incident. Keeping records of all incidents will make it obvious that your aisle is a hazardous area, allowing you to take preventive measures and subsequently stop your premiums from increasing.

2. Analyze data

Analyze your claim and incident data, as you may find that patterns quickly emerge. For example, analyzing your incidents and claims may point out that a certain location, team, or demographic is consistently leading to problems. This allows you to easily identify root causes and prevent them from occurring in the future, meaning you are less likely to see rising premiums as claims rack up without any attempt to stop them from happening in the first place.

3. Mitigate risks

If you were to carry out a thorough risk assessment of your workplace(s), you would find that hundreds of specific risks are ever-present. If you can analyze your trends and mitigate the biggest risks in your workplace, this helps to see your claims go down over time. Letting your insurance company know that you are identifying your biggest risks and mitigating them paints you in a good light, making it look like you’re doing everything in your power to give the insurance company (and yourself) an easy time with as few claims as possible. This makes you a lower-risk client in the insurance company’s eyes, leading to lower premiums going forward.

Sadly, there is no one-size-fits-all easy solution to cutting down your costs when it comes to insurance – the best thing you can do is to simply minimize your risk of accidents occurring in the first place, which makes you a much “safer” organization to insure, thus leading to lower premiums as you prove your organization to be one which is careful and meticulous. Of course, you should also shop around for the best insurance policies and rates available to you, but most (if not all) insurance companies will assess your risk and rate of claims as a major part of their premium calculations.

Looking for more advice on reducing insurance costs for your company? Get in touch today and see how we can help!