America. They say it’s the land of dreams and opportunity. And ‘they’ are correct, with roughly 543,000 new enterprises opening each month. According to statistics, seven out of ten fledgling businesses survive for at least two years, only half making it to five years, a third to ten years, and a quarter to fifteen years or longer. That’s incredible. There is a lot that comes with owning a business, but there are three key persons that every business owner needs: a good lawyer, a good CPA, and a good insurance agent.
If you’ve never purchased commercial insurance before, it may seem strange, yet most individuals will only consider pricing! Did you know that different companies have different policies and cover different operations? While you may believe you’re getting a fantastic price, discovering that you bought the wrong item in the middle of a claim is a bitter pill to swallow… One of the top five reasons for business closure today is a catastrophic claim not being covered. Here are a few items to consider while exploring insurance options in order to safeguard your business.
- Evaluate Your Needs- Just as no two small businesses are alike, so are their insurance requirements. “Do I have employees?” ponder on these questions. “Do I offer health insurance?” “Do I work in an office, remote, or a combination of both?” “Do I own a property like a building or office furniture?” “Do I need any special equipment in order to do my job?” “Does anyone have any contractual obligations to me?” “Do I offer counsel or create plans in situations when I have professional experience?” “Do I drive a commercial vehicle or one with my company’s name on it?” This is a nice place to start when determining which policies are significant.
- Determine the kind of policies you require- The most typical policies for businesses are General Liability (to learn more about what General Liability covers, go here.) and Professional Liability (to learn more about Professional Liability, click here.) Workers’ Compensation, Property, Equipment or Inland Marine, Commercial Auto, and Professional are some of the types of insurance available. Each policy accomplishes a distinctive goal. General liability insurance protects a company from lawsuits and protects them from losses caused by their job. Employees who are harmed are covered by workers’ compensation. Property insurance covers the structure, the contents of the building, and the possible loss of income if you are unable to function within the structure for a specified amount of time. Any tools, leased/rented equipment, or heavy equipment you may use or carry for jobs are considered equipment. Commercial auto insurance could cover your car as well as pay for any personal harm or property damage you cause while using an auto for business. Professional insurance protects you if you work as an advisor, such as a lawyer, personal trainer, or insurance agent or work defect with design. There are other products as well, which is why it’s crucial to meet with an insurance professional and discuss your individual requirements.
- Tailor It to Your Specific Needs- The days of a one-size-fits-all approach are long gone. Every single policy stated above can be customized to cover only the things that are relevant to you and exclude everything else. If you drive an older vehicle, it may not be necessary to get collision or comprehensive coverage; tailor your insurance to reflect this. A good agent can assist you here. Knowing my customers’ needs is vital to me as an agent. While I may recommend coverage, ultimately it is up to my customer to decide what is most essential to them, and that is how it should be.
- Learn How To Use Your Insurance- When calamity hits, it can be difficult to know what to do next. Typically, a single phone call to your agent will be enough. They can offer you explicit instructions on who to contact or even submit it for you, depending on the company. The other difficult decision is when to file a claim. We advise our clients to make the best decision they can. If you’re a plumber and a pipe bursts, causing $500 in damage to your clients’ belongings, but your deductible is $500, it’s usually best not to make a claim. • Be aware that if you submit too many claims, a company may decide not to insure you or charge you a high premium to do so. How many claims is too much? There is no magic number, and it is entirely up to the judgement of each organization.
If you have questions regarding your business insurance text or call ECI Insurance at 405-373-2977.