Business owners often see insurance as an expense. Think, insurance is your asset and can protect you financially. It’s an investment in your future, or is it?Some tinker with it to improve budget bottom lines leading to major setbacks if something goes wrong due under insuring or even no insurance at all.
A change in mindset is required
Changing the mindset to consider insurance cover as one of those important business decisions that significantly changes business risks, is a major first step in getting your insurance mix right.
Don’t rely on luck.. peace of mind is the key
Insurance is your asset and can protect you financially. I love the peace of mind of not having to rely on a stroke of luck, but a deliberate and decisive action that keeps things the way you like to see them, all day long, every day, every year…
A good insurance broker has the right answers
When your electronic diary is in not flipping out, slot in an hour to chat with your insurance agent. Ask all the questions, refresh the grey matter of what cover you have in place, what are your exposures, is there anything that stands out as a major risk and come up with a plan to get it right.
Don’t make the common mistake of thinking your are covered and then in your time of need, finding out your not.
It then:
checkRe-validates your understanding of what your cover is
checkFlags your risk matrix if there is an expansion
checkCaptures the changes in the business during the year
checkEstablish a relationship with the broker who effectively is working for you.
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Questions to ask when evaluating your cover.
Q: Do you handle multiple lines of insurance?
You want to partner with an agent that can bundle your policies to take advantage of multi-policy discounts which can save you hundreds.
Q: Is it easy to make changes to my policy?
Let’s face it – you’re busy. You need the ability to facilitate common changes to your policy at your convenience and without an office visit. Look for an agent, or insurance carrier, with online service capabilities.
Q: What can you do if my rates go up?
One of the advantages of working with an agent who represents many insurance companies is that they can often place you with another company to lower your rates. Your agent is your advocate.
Q: What’s my deductible?
Can I save money by choosing a higher deductible? How much money are you required to pay out of pocket if a disaster were to strike? Make sure you know the details of your deductible! By choosing a higher deductible, you may be able to lower your premiums.
Q: What’s the process for filing a claim, and how long does it usually take to reimburse?
Know your agency’s process for filing a claim. Additionally, don’t be shy about asking how long it’s going to take to get paid on a claim.
Essential insurances for your business
Answers sourced from Entrepreneur – Article by John Boitnott
Copyright: Image by StockUnlimited
Are you covered?
1. Professional liability insurance
Professional liability insurance, also known as errors and omissions (E&O) insurance, covers a business against negligence claims due to harm that results from mistakes or failure to perform.
2. Property insurance
Professional liability insurance, also known as errors and omissions (E&O) insurance, covers a business against negligence claims due to harm that results from mistakes or failure to perform.
3. Workers’ compensation insurance
Even if employees are performing seemingly low-risk work, slip-and-fall injuries or medical conditions such as carpal tunnel syndrome could result in a pricey claim.
4. Product liability insurance
If your business manufactures products for sale on the general market, product liability insurance is a must. Even a business that takes every measure possible to make sure its products are safe can find itself named in a lawsuit due to damages caused by one of its products.
5. Vehicle insurance
If company vehicles will be used, those vehicles should be fully insured to protect businesses against liability if an accident should occur.
6. Business interruption insurance
If a disaster or catastrophic event does occur, a business’s operations will likely be interrupted. During this time, your business will suffer from lost income due to your staff’s inability to work in the office, manufacture products or make sales calls.
