Insurance cover is an important aspect for any business owner to run their business free of fear of any unexpected, unfortunate occurrence. Despite this inevitable necessity, many business owners do not get exactly what they are looking for, especially for the small business owners who have to operate within the confines of the general ‘small business insurance’ while there exists the need for particular cover than general one.
The challenge when it comes to small business insurance is twofold, having the right coverage and enough of it to provide adequate protection.
Business interruption insurance
If a disaster or catastrophic event does occur, a business’s operations will likely be interrupted. During this time, your business will suffer from lost income due to your staff’s inability to work in the office, manufacture products or make sales calls. This type of insurance is especially applicable to companies that require a physical location to do business, such as retail stores. Business interruption insurance compensates a business for its lost income during these events.
Whether a business owns or leases its space, property insurance is a must. This insurance covers equipment, signage, inventory and furniture in the event of a fire, storm or theft. However, mass-destruction events like floods and earthquakes are generally not covered under standard property insurance policies. If your area is prone to these issues, check with your insurer to price a separate policy.
Professional liability insurance
Professional liability insurance, also known as errors and omissions (E&O) insurance, covers a business against negligence claims due to harm that results from mistakes or failure to perform. There is no one-size-fits-all policy for professional liability insurance. Each industry has its own set of concerns that will be addressed in a customized policy written for a business.
Sourced from: https://www.entrepreneur.com/article/241026
For your business to succeed, you will need to work with others in playing different roles. From the employees, to your customers, clients among other partakers, team work comes first in business. With such large numbers around you and a number of activities that pertain to your business as well, you will be exposed, in one way or the other, to a lawsuit that may drastically affect you and your business. This is why you will always find a reason to insure your business, no matter how small or large it is.
It Only Takes One
It only takes one accident, one broken contract, or one disgruntled worker to put your entire business at risk. If your company is sued for negligence, even winning can easily put you out of business because of the amount of money it will cost to mount your defense.
If you have a general liability policy, any employment liability claims may be excluded from that policy. If you have a commercial liability policy, property loss may be excluded. If you are a home-based business owner with homeowner’s insurance, it is unlikely that your business assets are covered under that policy.
Losses are Often Out of Your Control
If you walked in tomorrow to find your office had been robbed and every computer was gone, would you be able to replace them today and get back to business? Losses from theft, natural disaster, and other accidents could bankrupt your business if you don’t have insurance to help replace what is lost.
Setting out to shop for a good insurance agent is not an easy task. You will need to be very careful so as not to fall prey to agents who cannot effectively take care of your interests. You have to consider a number of traits of the agent you are working with to avoid inconveniences once you are already into the deal. Be on the watch for their skills in handling people and their situations, their overall personality as well as their general knowledge and experience in the industry. Here are some of the qualities a good insurer should have.
Puts the needs of the client first – An agent who is only out to earn a commission, regardless of the needs of the client, is not likely to last long in the business. Agents and brokers who listen carefully to what their clients and prospects say will be able to earn their trust, which is the hardest part of their job. Those who are willing to put their clients into a product that pays a lower commission because it better fits their needs are much more likely to be successful.
Persistence – This is perhaps the most vital quality of any good insurance agent. Those who work in this field absolutely must be able to handle rejection on a daily basis over the course of their careers, and do it with a smile. Good insurance agents understand that each “no” only brings them closer to someone who will say “yes.”
Wide array of products – As the old saying goes, if all you have to work with is a hammer, then everything in the world looks like a nail. A good insurance agent will be able to offer a comprehensive selection of products and services that can meet any reasonable need a client might have.