Here are few tips to keep in mind when finding the right policy for your business type.
Know your business inside out
Before you can take out an insurance plan that works for you, you need to understand what your business needs. Take time to create a list or inventory of what needs to be insured in your business including products, equipment, and property. It is always a good idea to assess your exposures or environmental hazards, potential harm caused by products and services and unique vulnerabilities. Some questions you may want to ask yourself are:
- What is the total value of my operations or business?
- Are there major environmental factors that could damage my property?
- What assets are most essential to run my business?
- How many full-time and part-time employees do I need to take into consideration in terms of benefits, liability and workers compensation?
- Can equipment or materials cause damage to my property or products?
Establish your business
Every business owner should establish a budget of expenses which includes items such as rent, supplies, labour, utilities and most importantly, insurance. Once you have established an overall budget for your expenses, you can begin to look for an insurance plan that suits your needs. Remember that your budget and the cost of insurance is based on the potential loss or damage your business might face.
Once you have set up a budget and define exactly what your business needs are, you can contact an advisor that will help you find the right coverage for you. Finding the right consultant for you might be a task in itself as you'll have to choose an advisor who perfectly understands your business.
Once you've find your advisor, the best practice is to identify with him the aspects of your business that require the highest protection in order to choose a plan that will help you to secure your business and financial goals. You'll then be able to compare quotes among different insurance companies. Finally, before signing a policy, make sure your advisor has described all benefits thoroughly so that you won't get over-insured. Exhaustive coverage is not always the better option!