Don’t assume you’re getting the insurance coverage you need; do some research
If you’re starting out in business (or even if you’re a tried and tested hand) you could probably benefit from a few business insurance tips.
It is important to remember that business insurance is a competitive industry and you should shop around and look at all the available options before signing on the dotted line.
Also, keep in mind that insurance companies are a favorite target of frauds and scammers, especially when it comes to business insurance.
So it is essential that you are upfront and open in all your dealings and do not conceal any information that could lead the companies to think you are cheating them.
If this happens they will refuse to pay you and then you will get caught up in long drawn out legal hassles.
Here are a few basic business insurance tips that should help you get the business insurance that is right for you.
1. Note down all your expectations from the business insurance policy you are planning on taking.
Keep it as detailed as possible and put in all your questions and uncertainties. Go through all the issues with the various insurance agents you meet.
The agent who answers you clearly, with the most detail and with the most patience, is the best one.
2. Make sure that you get at least three offers for each type of policy you are considering.
Once you have them, schedule a second round of meetings and ask the different agents about why their coverage is limited or their rates are higher than the others.
Often what appears to be expensive to the layman may actually result in a long term saving.
3. Once you have an insurance agent you can trust, be open with them about your business and your business insurance needs.
He or she is a professional and just like your doctor cannot prescribe medicine for you unless you tell them all your symptoms. The agent cannot help you get the right coverage unless they have the full picture.
4. Since you will be having different business insurance policies to cover different aspects of your business operations, make sure that they do not overlap. You will be paying a second time for coverage you already have.
5. Deal only with “Admitted Insurance Companies.” These companies have a contingency fund that will ensure that even if the insurance company fails or closes for any reason, the policy holders are protected.
Unadmitted companies may offer cheaper policies but do not give this protection to their business insurance policy holders.
6.Keep complete records of all your business insurance policies. This includes all the premium payments, claims made and compensation received.
This kind of record keeping will help you keep track of the benefits you receive as well as working in your favor when negotiating for lower premiums at the time of renewing the policies.
7. Make sure that you keep reassessing your insurance needs and the policies you have. As your business grows so will your liabilities and potential for loss.
Rapidly expanding firms often do not realize how their business insurance needs have grown and are often underinsured.
A company that has decided to do its own deliveries and has bought a few trucks may not have insured them properly.
It is a good idea to get an independent appraiser to value your business and property every few years. Being an outsider he will be more objective than you and also may note things that you have overlooked.
8. Remember that being over insured is a waste of money.But being under insured is an open invitation to disaster.
Never fall into the trap of thinking that because you have not made a claim on a business insurance policy for years, you can reduce the value and the premiums. Disaster can strike after 10 days or 10 years.
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