Small business insurance is nothing short of a staple. As a small business owner, you have invested a lot of time, energy and capital into nurturing your enterprise. It only makes sense to protect your investment (and your business) with the right small business insurance policy.
Unfortunately, shopping for insurance can be confusing, especially if you are doing it the first time around. With thousands of jargon-filled policies and covers on the shelf, there is just so much to pick from. Not to mention the pushy insurance salesmen who seem to always be in a hurry to land a deal.
All that is true but its also extremely important to pick the right small business insurance policy for your business. A good insurance policy provides comprehensive coverage to your business and safeguards it against threats, claims, and risks.
The first and foremost thing you should do is research – and research religiously. Get acquainted with different small business insurance packages and read up on the types of covers they offer.
Then, read up on why you need different covers. For example, an office cover will help protect your commercial space and its contents, a public liability cover will protect your business against injury, accident and property loss claims and a commercial car insurance policy will safeguard your fleet.
Once you know which covers are included in small business insurance packages and what’s their purpose, you will be in a better position to understand your insurance options.
- Understand Your Legal Obligations
This is extremely important because an inability to comply with legal regulations and insurance requirements can cost your small business dearly – in terms of finances as well as reputation.
In the UK, taking out small business insurance is not a legal obligation but there are other policies you might need. For instance, if your small business employees anyone, you need to take out employers’ liability cover to protect against lawsuits filed by employees.
Look up the insurance requirements of your industry and then check which regulations apply in your region. The UK govt website is a wonderful resource for doing that. If you are still confused, schedule a consultation with a reliable insurance broker.
- Assess Your Risks
The next step in buying the right small business insurance policy is to assess the coverage requirements of your business and develop an understanding of the threats it faces.
A simple way to identify the risks your small business faces is to look at industry-wide data. Simply, identify the sector your venture belongs to and look at the risks businesses in that industry commonly face.
Risks faced by businesses differ depending on the nature of the business, the people employed and everyday operations. The type and level of risk a surgeon faces differs from the threats a restaurant owner must deal with. Identify and assess your risks accordingly.
- Compare Quotes
Do not, we repeat, DO NOT simply settle for the first quote you receive. The insurance industry is saturated and highly competitive, which means that insurance firms go out of their way to acquire new customers.
That is exactly why you should never forget to compare quotes you receive from an insurer. Shop around and ask at least 3 different insurance agents for available small business insurance packages. Compare the total insurance expense, level of coverage and premiums before you make a decision.
Since it is a highly competitive industry, you can even ask for a discount, bring up competing quotes and bargain with your insurer.
- Pick a Seasoned Insurance Agent
An insurance agent or an insurance broker serves as an important intermediary in the process of obtaining comprehensive cover. Your insurance agent is the person you are entrusting with the task of protecting your business and keeping it afloat, come what may.
That is exactly why it is important for you to pick a licensed insurance agent. Look for established insurance brokers who are experienced and well-connected. Initiate the selection process with a discussion session and let your prospective insurer know how your business operates.
The best insurance brokers hear you out with an open heart and collaborate with you to identify your risks and work out packages that can mitigate them and fully protect your small business.