Insurance Tips for First Time Business Owners
Owning your own business can be a thrilling, but daunting experience. It is important that you keep your business safe and protected. Sometimes accidents happen, and when they do, having insurance is a good safety net. As you navigate through the waters of being a small business owner, use these tips to help out.
Understand your risks
Every business, no matter its size, faces risks. While some risks can be mitigated through good planning and communication, others can be out of your control. The weather, cyber attacks, and other accidents could be a threat. Understanding some common risks is the first step to keeping your business safe.
Talk to Your Agent
There are a lot of insurance coverages out there and figuring out the best one for you could be hard. Talking to a commercial insurance agent can help you figure out the types of coverages out there and what your business may need. Agents are also great for answering any questions you may have.
Bundle Your Coverages
Bundles are a great way for small business owners to get some of their essential coverages in a convenient package. One of the most popular bundles is a BOP, or business owners policy. This is a bundle of common business insurance policies. Your BOP can differ from business to business, so it’s best to talk to your agent about what your business need.
Consider the Nature of Your Business
Depending on what your business does, you may need specific types of coverages that might not be just traditional general liability insurance. For instance, for businesses that have an online component, cyber insurance may be helpful. Or if you have a company car, then you should have commercial auto insurance. If your business is located somewhere with a risk of flooding, flood insurance can come in handy. It’s important to personalize your coverages to the nature of your business.
The first insurance company you call may not be the best for you. They have not have the rates, premium, or coverages that you are looking for. That’s okay! Shop around before committing to an insurer. Take your time to find the right fit for you. It may also be a good idea to do some research before you call an agent to discuss potential policies. Inform yourself, but it’s also okay to ask questions.
Evaluate Your Needs Periodically
As time goes on, the needs of your business may change. Growth, relocation, or expansion can all affect your insurance. Whenever a change happens, make sure that your insurance is updated. And even if you think that things are consistent, it never hurts to regularly reassess your needs.
Don’t be afraid to reach out for expert opinion. Insurance can be difficult to understand. Talk to your agent to discuss any questions or concerns you have regarding the insurance and wellbeing of your company. It’s better to be safe than sorry. Not all accidents can be prevented, which is why having adequate insurance coverage is so important!