Starting a new business carries its own set of risks. These range from the threat of business failure to that of accidents and injuries. It is possible to mitigate these financial risks with commercial insurance, also known as business insurance.
However, finding and applying for the right insurance policy for your business can be confusing, and more often than not scares new business owners. Out tips are designed to remove some of your fear.
Before you get started with your insurance process, consider these Top Commercial Insurance Tips for Newbies:
Often, new business owners decide to put off getting commercial insurance because they consider it to be an unnecessary expense. If they do have insurance, they are often underinsured. In fact, up to 40% of small businesses have no insurance at all.
A survey carried out found that 35.2% of small business owners suffered an event that could have led to an insurance claim. This opens your business up to the risk of financial devastation. Such a risk can be reduced by way of an insurance policy tailored to your specific needs.
Understand the Tax Implications
Your commercial insurance is tax-deductible. This means that you can consider insurance costs a write-off on your tax forms, which is a great way of business savings.
Bundle Your Insurance Policies
There are various things covered by commercial insurance, including your employees, contractors, property, vehicles, and more. Business owners often buy multiple insurances to cover all of these elements of their business.
This can all add up. The next minute you could be way above your insurance budget. One way to save money is by bundling insurance coverage – that is, placing all of your business insurance requirements under a single insurance policy. This also helps in saving time when renewing your insurance.
Find an Insurance Company with a Good Reputation
Independent insurance agents are legally obligated to act in your best interests. They represent multiple insurance companies and can help you obtain quotes from a variety of sources. Insurance offered by one insurer may differ in price from that provided by another. They may also be different in terms of cover.
An agent will help you compare policies and choose the one that is right for your business needs, both in terms of cover and price. They will also help provide a risk analysis of your business, identify the significant risks, and determine which can be insured. This allows you to ascertain that you are as protected as much as possible, and as necessitated by your business.
Buy Industry-Specific Coverage
A Business Owner’s Policy (BOP) is an essential item for small businesses. However, beyond your BOP, you should also buy insurance specific and tailored to the industry in which your company operates. For example, Contractors Liability is a good choice for a roofing business.
Doing so allows you to take advantage of cover for industry-specific risks. For example, insurance for an online, digital company might include cover for the risk of a DDoS attack, and cover for a consultant company may offer protection in the case of wrong or inaccurate advice. A BOP or other general policy would likely not provide these coverages.
Buying commercial insurance is a confusing and time-consuming process if it is your first time doing so. We hope that these Top Commercial Insurance Tips for Newbies steer you in the right direction when it comes to buying insurance for your business.