Wednesday, January 15, 2014

The Do’s and Don’ts of Purchasing Insurance Coverage for Your Business

The list of do’s and don’ts when it comes to owning your own business is long.  At the top of that list of do’s is to budget for adequate insurance to cover your business from the unexpected.  This will ensure if something does occur you are covered and will not lose everything you have worked so hard to accomplish.

When looking into insurance for your business there are some things that will help you lower your risks and obtain insurance that fits your company’s needs.

The do’s of purchasing business insurance

The first and most important tip in purchasing insurance for your business is to find an agent with is expertise in all types of insurance policies.  An agent with experience is necessary when it comes making sure you have enough coverage for your business.

Your business insurance coverage should include all the basic coverage such as property insurance with equipment coverage, auto insurance on business vehicles, workers compensation and general liability.  It is important to make sure the coverage that you purchase is inclusive of all of this.

When you finally do get insurance for your business it is important that you store all of your business records including all insurance paperwork together off site.  This way if something does occur all the necessary paperwork is in a place you can get too easily and claim your money without difficulties.

It is important to know who the insurer is as well.  Do research on the company that you plan on getting insured through. It is important to know who you are working with when it comes to insurance and every decision in business.

The don’ts of purchasing insurance for your business

When it comes to insurance for your business never go without.  It may seem like a good idea due to a limited budget to go without insurance to save money but it is never a good idea to go without insurance.  If a catastrophe occurs and you are under-insured or not insured at all then all your efforts will have been in vain.

It is also important to disclose all information to your insurance agent upon getting insurance and when any changes are made to the business.  You need to keep your insurance agent up to date on the changes with your business to make sure that you are never caught without enough insurance.

Tips to help lower business insurance premiums

Insurance premiums, even those in business, are based on the risks involved in the business.  Agents will make evaluations on your business to determine the profit and losses involving your business situation.  In order to bring your risk down, therefore lowering your premium here are some general tips.

Make sure the lighting in and around the office and premise is more than sufficient.  When people can see the world around them they are less likely to have an accident.

Keep the office’s electrical wiring, equipment and all machinery in mint condition.  When the office machines and equipment is kept in good condition, the result will be that the overall condition of the office will be better.  A clean, well-kept environment within your business will result in reduced premiums.  When everything is kept in prime working order and kept organized the environment in general is safer.

Install safety devices such as smoke, fire and carbon monoxide detectors throughout the business setting.  An alarm system and sprinkler system that is monitored will also help to lower premiums.

As stated above, in regards to paperwork make sure you keep everything associated with the business.   Every purchase that is made along with upgrades to the premise, equipment and such should be documented and kept off premise.

The most important thing in regards to business insurance is to budget for the appropriate amount and variety you will need. Everything from workers compensation to general liability will help to protect you in case of an incident.

Choosing The Perfect Business Insurance Package For Your Company

Insurance for your business is necessary to protect you from the risks involved on owning your own company.  When it comes to insurance for your business there is a broad spectrum of policies to choose from including workers compensation policies, general business liability, property insurance, equipment insurance as well as auto insurance for business vehicles. This allows you to manage the risks within your business and to protect the time and money that you have put into growing your company.  When purchasing business insurance you will find yourself protecting the risks within your business that are not within your control.


When considering insurance for your business it is pertinent to realize the importance of having an agent that knows exactly what your business needs are.  Many agents sell insurance for business needs however all businesses require a custom insurance plan tailored to the specific needs of your business.  When choosing an agent look into a local insurance agency that has that has insured companies within the same scope as yours.  Using a local agent is also a good plan as they are close enough to evaluate your business in person. 


Understanding the basics is important when it comes to insurance of all varieties including for your business.  Purchasing the right policy will protect assets in case of loss due to theft or natural causes.  Weather is often a contributing factor when it comes to unforeseen losses to one’s business assets including inventory as well as insurance covering the building.  


A mistake new business owners often make is overlooking insurance and not putting the funds in the budget for the correct coverage.  Skimping on insurance for your business will only leave you inadequate coverage.  When your business doesn't start out with the correct coverage for your needs it allows the need to go unmet. This is problematic for when disaster of any kind strikes you find out too late that being under-insured leaves you paying for the damages out of your own pockets.


The first area to concern yourself with when it comes to business insurance is to make sure that your coverage covers rebuilding your business property and to replace your inventory as well as business possessions.  This includes furniture, store fixtures, equipment, machinery, inventory, personal property used in the business, labor, building improvements that have been made and any contractual obligations you may have within the business. Keeping a list of items included in this category on hand and up to date and checking in with your agent is the best way to ensure that your coverage needs are kept up to date. 


Another thing to consider is coverage to make sure your business thrives even if something happens and you need to shut down for a bit of time. A combination of business income coverage, extra income coverage and contingent business interruption insurance is needed to cover the bases if a disaster occurs.  Business insurance covers the unexpected. Make sure your business survives the unexpected by purchasing the right amount of coverage as well as the correct type of insurance for your business needs.