Business insurance is a must have for any business house. Research has however shown that many entrepreneurs don’t appreciate the essence of this practice. For those who attempt to do it, many of them fall into the trap of over or under-insuring the business. Below are a few tips which can help in planning your insurance.
- Always seek advice from a reputable broker to ensure you are getting the right type of coverage at the right price.
- Make a checklist of everything you need to insure including contents, equipment, inventory, separate premises or rental accommodations etc.
- Don’t forget liability insurance because something as simple as a courier slipping on your stairs can turn into a legal nightmare if you don’t have adequate liability coverage.
- Consider errors and omissions coverage, if you are in the business of providing professional advice, a mistake that causes a client to lose money could lead to lawsuits.
- Always remember that a personal car insurance plan will not cover business usage.
- It is a good thing to ensure that you have appropriate coverage for employees including liability for their activities.
- Where it makes sense, look into business interruption insurance. This comes in a variety of options including coverage for ongoing expenses and lost income while your business is closed.
- Look for ways to lower your premiums by doing simple things like taking advantage of group rates through business associations.
- Try to review your policies with your broker at least once a year and any time there is significant change to your business to ensure you always have adequate coverage.
The above tips should prove insightful and helpful for all business houses.