Frederick Jace
Much has been said about the need for insurance coverage in every aspect of life, including the business world. Unfortunately, there are still some business owners who are not properly covered against all the risks their businesses face. While the vast majority of businesses have some form of cover, they are still exposed to different types of risks. To make sure your business has all the necessary insurance policies, you might need to consult a business insurance consultant from Smart Business Insurance. Below is a list of the most important types of insurance:
Commercial Property Insurance: Most of the startup capital for small businesses usually goes towards acquiring tangible assets, such as furniture, stationery, computers, points of sale systems, inventory, and other forms of tangible assets. These business assets need to be insured against the risk of damage and theft among other liabilities. By purchasing commercial property insurance, you can have peace of mind knowing that you will not incur any liabilities in case of a robbery, break-in, fire damage or storm damage among other types of incidents that may lead to loss or theft of your business assets.
Workers Compensation Insurance: It is crucial to insure all your valuables, but you should not forget the human capital. Your employees are an important part of your business. How you treat them can have a huge impact on the success of your business. That is why you need to enroll all your employees to the workers compensation insurance scheme. This will help to protect you from any lawsuits that may arise from injuries sustained by your employees at the workplace. Workers’ compensation also pays the full medical costs incurred in the course of treating injured workers. It also comes with temporary and permanent disability benefits. The business owner only needs to pay premiums regularly.
Public Liability Insurance: When you open your doors to the public, you are exposing yourself to potential lawsuits. Imagine someone walking into your business premise, slipping, and falling on a dry or wet floor. The person can file an injury lawsuit against your company. If they have a great lawyer, they’ll win the case. Consequently, the court will order you to pay tens of thousands or hundreds of thousands of dollars in compensation for damages and legal costs. This may force you to close shop and declare bankruptcy. To ensure your business survives the cost of fighting lawsuits, you will need to purchase public liability insurance. The policy will pay for property damage, physical injuries, and legal expenses.
Commercial Vehicle Insurance: If you own a commercial vehicle, you should think about insuring both the property and cargo it carries. In case of an accident, or robbery, you will be compensated for the financial losses incurred.
Critical Aspects That Appertain Small Business Insurance
As you can see, there are many types of smart business insurance policies. If you need small business insurance, therefore, you have to do some research before settling on a given policy. The following are critical factors that should be considered when analyzing small business insurance policies:
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Liabilities Covered
The liability coverage that comes with a policy is perhaps the most crucial aspect of a small business insurance policy. Before you can pay for a given policy, you want to know exactly what it covers. For instance, when looking at a public liability insurance policy for your business, make sure the policy will pay for legal fees, property damage and bodily injury among other types of liabilities. If you fail to check this, you may purchase a policy that only covers legal fees and leaves you exposed to liabilities arising from bodily injury and property damage. Similarly, if you want a commercial vehicle insurance policy for your business, you should make sure that the contents of the vehicle are covered together with the vehicle itself.
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Coverage Limits
It is not enough to know that all the liabilities your business is exposed to are covered, you also need to check the extent of the coverage. Be sure to check the coverage limit for each liability that is covered. For instance, if legal fees incurred while defending injury lawsuits is usually around 30,000 dollars, the ideal policy should provide a higher coverage limit for legal fees. Similarly, if you are worried of slip and fall lawsuits, be sure to check the highest compensation awarded by local courts and get a policy with a coverage limit that does not leave you exposed in any way.
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Insurance Premiums
Premiums are usually a measure of risk, so if your business seems to be risky, most insurers will quote higher premiums. However, some insurers usually charge higher premiums than others, so it may be a good idea to shop around to find the most affordable insurance policy for your needs. You do not want to spend a lot of money paying for different types of insurance policies and end up breaking even or reporting losses due to the costly premiums. Therefore, you should shop around to find the best policy for your budgetary needs.
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Exclusion Clauses
Most policies usually come with exclusion clauses. These are usually listed on the policy document, so be sure to read the fine print before deciding to put pen to paper. Some exclusion clauses can make a policy useless, so it is crucial you exercise due diligence and care when reading the policy document.
Please note that insurance providers can decide to reject a claim, so it is crucial you look at the history of an insurance company, particularly if there are any pending court cases between the insurer and policyholders. Firms with a lot of litigation history with policyholders should be avoided. Be sure to read a couple of reviews from policy holders and industry experts before you commit yourself. There are also ratings and client testimonials online, which may be able to help you to pick out the best insurer for your smart business insurance needs. You will need to exercise patience during your research.
