Regardless of the reputation or track record of your business, a single incident or allegation could jeopardize everything you have built. As a result, business insurance is an almost mandatory asset for any company, particularly in what is becoming an increasingly litigious culture.
Business insurance protects small, large, and home businesses from liability claims from both customers and employees, as well as providing peace of mind for you as the owner. Nevertheless, while business insurance is a necessary expense, it does not have to be a large one. The following are 5 tips to help you save money on insurance:
Tip 1: Saving on a Home Business
The most expensive asset in a home business is typically the equipment. From computers to fax machines and printers, having your technological components insured will shield you in the event of a breakdown. Many make the mistake of assuming a conventional home insurance policy will cover these items, when home insurance usually does not take into account equipment used for business. There is also the potential for consumer complaints regarding anything you ship or build on their behalf.
However, with a home business, there may be significant discounts due to the nature of the business. Less employees means a smaller chance of worker compensation claims, and the cost of the equipment may save you from having to pay a higher deductible in exchange for lower premiums. Ask about any package offerings for home businesses.
Tip 2: Safety and Injury Prevention Measures
If you own a business that involves a potentially dangerous activity, you can mitigate the cost of insurance by implementing safety procedures and training to help prevent accidents in the workplace. In most regions, some form of workers’ compensation is required, either through a private carrier or through state funding. Even if such insurance is not compulsory by law, it is a good idea to purchase some form of Employer’s liability coverage to protect your business.
Tip 3: Select an Insurance Package Tailored to Your Needs
If you are a service professional, you will be looking for an insurance package that fits your specific areas of vulnerability. Lawyers, doctors, and even software engineers will more than likely need an Errors and Omissions Insurance package. This will protect you from any consumer claims that accuse you of providing negligent advice or services, as well as slander or libel. Most insurance companies will offer policies that are catered to a specific industry, but can get creative for professionals whose services are not as common.
Tip 4: Assess Your Risk
Before opting for a specific package, take the time to assess the amount of risk your business poses to your assets, your employees, and the client. While you can reduce your premiums by paying a higher deductible, you should ask yourself if this is something you can afford should an incident occur.
Tip 5: Shop Around
The best way to save money on business insurance is to check with every available provider and compare prices and package flexibility. It is also important to read each policy carefully, as many will include exclusions and restrictions on what is insured. For example, a piece of equipment may only be covered provided it meets certain standards or undergoes regular maintenance. Theft may only be covered provided you have adequate security measures in place.
Insurance rates and packages often change from business to business. Be sure to shop around and work with an agent to find a policy that covers your specific areas of risk.