People invest their entire lives into starting, and then improving a strong business. Even though thinking about what can go wrong when you are just starting might seem counterproductive, it might be a “saving belt” at later stages. Grit and focusing on growth are integral to success, but we have to highlight that actually business insurance is what will come extremely important at one point. It is only there to help you along the way.
If we sneak peek into business success statistics, we can see that they can be discouraging. Unlike personal insurance, you will probably need to file a claim as a business owner at some time along the path. This is happening simply because your workers could get sick or injured, or your tiny mistake might damage a client’s intellectual property.
This text is all about avoiding the “dead-end” streets. What are your options if you want to grow your business idea while doing your best to manage the risks?
Here are our tips and little-known facts which can help you stay on the surface.
First things First: Why Do You Need Business Insurance
One of the best things today is that almost any expenses related to the inner-workings of your business can actually be insured. Using a variety of policies, you can cover up all important points of your business. Anything can be insured – the place where you do your business, any valuable equipment or property, or one of your employees’ health and wellbeing can all be covered.
Your insurance policy can include property, auto, liability, or even professional indemnity insurance, protecting you from causing unintentional harm, even by giving bad advice.
Business insurance is not something that needs to take a lot of time and effort. It can be, actually, fully automated. There are amazing softwares with supreme integrations and they can help you arrange your time easily. From insurance email marketing automation, to online payments and insurance extensions, using the right solution is essential for the following years.
What if You Have Legal Obligations
Things such as the number of employees or staff and the risk factors involved in your industry, might be something that defines if you are required to get business insurance.
For example, in some states, worker’s compensation insurance is a legal requirement, especially for businesses with multiple workers. If an employee gets injured on the job, or falls sick on work, or is laid off and needs compensation, the employer’s liability will cover it. If the company is not able to cover legal insurance obligations, the company might be fined.
The same goes if your workers damage other people’s property or another person, while working for you. For example, if one of your employees hurts their hand as a result of working under you, worker’s compensation insurance covers any potential legal fees, as well as their medical bills.
There is also insurance called “general liability insurance”, and it protects your business from legal fees and lawsuits involving third parties. Unlike worker’s compensation, If a person who is not your employee gets injured while in your office or business premises, or you cause damage to their property, the insurer will reimburse you then.
The important thing is that, even if your state does not force you to purchase general liability insurance, your landlord might. So if you are renting commercial space to home your business premises, this insurance will protect both you and the landlord from potential lawsuits.
Industry-Specific Risks: Learn All About Them
Depending on industry, there are different types of specific risks which you should be aware of. For example, If you are thriving in an accounting business, you likely need to worry about making mistakes while filing a client’s tax returns. Those mistakes might be a human factor, or data entry mistakes, and they happen from time to time.
Then, a massage therapist or a restaurant owner might fret if a customer gets sick or injured. Of course, no one wants this to happen, but things like this can easily occur.
On the other hand, construction contractors have a wide range of potential liabilities on their hands. Some of the most common are workplace injuries, damaged equipment, and third-party property. In this case, you would likely need separate policies for your equipment, employees, and general liability to include damages to third parties.
Exaggerate Your Insurance Needs
Think of insurance as an investment rather than an added expense. This is the first thing any insurance company will tell you.
Do not be tempted by low costs, and do in-depth research on your insurance provider. Remember, the litigation process can be a financial nightmare, even if a lawsuit brought against you is dismissed. To cover your business and everyone else who is a part of your work environment, getting that extra protection can make or break a business.
How to adjust the Deductible
What is the deductible? In short – it is the amount of money you guarantee to pay as a business owner should an insurance agency agree to cover your losses.
Basically, you pay the deductible, and the insurer then covers the rest of the costs. Of course, the rest of the cost should be within the limits of your policy. The amount in question is usually around 2-10% of the cost of fixing the damage.
People tend to promise to pay higher deductibles in order to avoid paying high premiums every month.
It is not a secret that as a business owner, you carry the biggest burden in your company – that of responsibility.
With the appropriate insurance policy, a realistic deductible, and a dependable insurer, you will be able to carry this burden with more ease and focus on growing your business.