Depending on where your business is physically located and what particular sector or industry you are in, there might be very different combinations of company insurance policies that you need to have.
Without the right insurance policies, you risk your company getting unprepared for financial calamities you can’t afford. Knowing five tricks to secure company insurance policies helps you.
5 Tricks to Getting Business Insurance Policies
If you’re not sure where to start, Forbes recommends sitting down and reviewing your current insurance. If you have none, then you need to start getting anything you can that you need. If you do have insurance, then you need to ascertain three things.
- Where are you overinsured?
- Where are you underinsured?
- Where do you have overlaps?
In terms of getting actual business insurance policies, there are five tricks to getting started.
- Overestimate Your Company Needs: It’s better to be covered more than you think you need than get it ‘just right. Many businesses actually fall short of their projections about how much insurance they will need.
- Read Policies Carefully: One of the worst things that can happen is assuming you’re covered for something and then finding out you’re actually not when it happens.
- Aim for High Deductibles: The higher your deductibles are, the less likely you will file a claim. It’s more you pay out of pocket, but it also keeps your premiums down on insurance payments.
- Know What Impacts Your Rates: You might get lower rates for anything from security alarms to employee training. Do everything you can to keep your insurance rates low to make payments more affordable. Real-world security has obvious practical benefits, too.
- Hire an Insurance Agent: A professional agent can take a lot of the legwork out of this for you by doing price shopping.
Staffing Business Insurance
Staffing agency insurance might be necessary for firms that provide IT and engineering professionals to other businesses. In fact, companies that hire such professionals through a staffing agency might also need to get certifications of the insurance of recruits, temp workers, and contract professionals that they hire through a staffing agency.
Having such paperwork on hand and being able to verify its authenticity can help clear things up quickly if there are any concerns over hiring practices and the legalities involved with using staffing personnel to fill your company’s needs and positions.
Kinds of Insurance You Might Need
What you need in every industry varies, but there are four policies you should look at in every sector or situation.
- Business Interruption Insurance: Do you regret not having this during the pandemic? You might not have missed out on anything, because many such policies don’t cover pandemics. What they will likely cover are the kinds of events known to disrupt your company’s ability to even operate.
- Liability Insurance: Also known as general liability insurance, this policy can protect you against claims that anyone who is associated with your company might have caused. Assess your company’s liability risks properly. Some might be excluded and would need specialty coverage.
- Workers Compensation Insurance: This policy protects employees and families if the worker is injured on the job. Such injuries must be so disabling that the worker can no longer do the job, either permanently or temporarily.
- Vehicle Insurance: This one you might not need. If you don’t have any vehicles you drive regularly for work, then you might not need coverage for this. A bar or office might get by without it, but contractors and realtors could. Personal liability insurance might not protect a business if you use a personal vehicle for work.
It’s Not Just a Cost of Doing Business
Many entrepreneurs and company leaders view business insurance policies as a cost of doing business because many policies are simply required to be in place based on their location and industry. However, for your rates and premiums, you should get great coverage overall that protects your business more than just eating up some of your revenue.