As a business owner, if you don't protect yourself with business insurance, who will? You work hard to ensure your business's success, but sometimes, your business's success can be affected by events often outside of your control. It is for times like these, when—with business insurance—someone else will also have your back, and you won't be alone.
Protect everything you are working so hard for with these tips and get the best commercial insurance coverage you need.
Work out of the home? Make sure you're covered with small business insurance.
When your workplace is also your home-base then you might be under the mistaken belief that your home business is insured under the liability and contents coverage you have with your home insurance policy; it's not, unless your home insurer knows you operate a business out of your home.
- Related Read: When Does A Freelancer Need Business Insurance?
Make a checklist.
Consider the physical items you might need to insure that are important to your business. Items like contents, equipment, electronics, inventory, tools, property etc.
Don't overlook liability insurance.
Something as simple as a customer slipping on your walkway, or an employee damaging property at a client's site, can turn into a financial nightmare if you don't have liability coverage. This type of business liability insurance (often call Commercial General Liability) is not a Professional Liability-errors and omissions-policy. That's all together different.
- Related Read: Commercial General Liability (CGL): What Is It?
Consider errors and omissions coverage.
If you are in the business of providing professional advice, an errors and omissions insurance policy is simply smart business. A mistake that causes a client to lose money, or causes harm in some way, could be financially devastating to your business if it leads to a lawsuit.
Drive your personal vehicle for business?
If your company vehicle is also your personal vehicle, don't assume your personal auto insurance offers you the protection you need. Talk to your auto insurance provider to see if you need a commercial auto insurance policy.
Buy a "package" policy.
Sure, you can buy a standalone policy that covers your physical items from one insurer, and then buy another policy, say for Commercial General Liability (CGL) from another, but the fact is if you buy all your business insurance needs from one insurer, you'll likely get the best price.
- Related Read: What Is Business Insurance?
Look for ways to lower your premiums.
The best defence is a good offence. Implementing workplace safety programs, installing a security system, fire alarms or sprinklers for example, may help you get a cheaper premium.
Pay your premium all at once, rather than in monthly installments.
Many companies charge a little extra to cover the cost of administering payments every month, so if you can afford to pay your business premium annually, rather than monthly, at the end of the day you'll pay less for your coverage.
Review your policies with your broker at least once a year.
No business is stagnant; there are always ebbs and flows. Review your coverage annually, or any time there's a significant change (like a new endeavour, more employees etc.) to ensure you have the coverage you need when you need it most.
Just like your personal auto insurance and home insurance, business insurance premiums can vary considerably. What you might pay with one insurer is not the same as what you would get with another. It pays to shop the market and compare business insurance quotes to make sure you're getting the best price for the coverage you need.