On the surface, insurance seems like a complicated subject, and in a lot of ways, it actually is. It often takes an expert to fully understand the terms and conditions of business insurance policies. While the intricacies of business insurance are often complicated, the basics are easy to understand. In this post, we simplify insurance for business owners. In the end, you should be able to sidestep common pitfalls and make a more informed decision.
Should I Buy Business Insurance Online?
Most businesses today choose to buy insurance online. Mainly because they get better rates when they buy insurance directly from the company. A lot of sites specialize in business insurance and are geared to provide support and consultation online. For example, if you are looking for insurance for business by Next Insurance you can quickly filter out relevant policies online. You can modify and buy a policy in a matter of minutes without ever having to speak to an agent.
What Are My Business Risks?
Right from customer lawsuits to natural calamities, a business operation can be threatened by a variety of risk factors. A lot of risks are common in most industries. For example, a flood or a fire can happen at any business location and is thus not industry specific. However, some risks are unique to certain businesses. For example, a pizza shop that offers home deliveries would need commercial vehicle insurance to protect their employees, vehicles, and third parties from accidents.
The first step to buying business insurance is conducting a proper risk assessment. Try and identify all the risk factors that can hurt your business. Do you store customer data? Then you need cyber liability insurance to recover from data leaks and hacking. Hire a risk assessment expert to identify your business risks.
What Insurance Policies Do I Need to Cover Those Risks?
Once you narrow down your list of risks, you are ready to find insurance products that can help cover those threats. For most businesses that have physical locations, a property insurance is a must. General liability insurance is also recommended for any business that sells products directly to customers. This insurance protects your business from customer lawsuits if your product ends up causing any harm. If you run a B2B operation, then you also might need professional indemnity insurance. This helps you cover the cost of any damages caused by your service or product to a client.
What Are My Insurance Obligations?
Depending on your business operations and industry, you might be legally required to buy certain types of insurance policies. For instance, if you have employees, you need to buy workers’ compensation policy to operate the business legally in most states. Speak to an expert about the mandatory insurance policies that apply to your industry.
Can I Benefit from Buying a Business Owner’s Policy?
A BOP or Business Owner’s Policy includes a few different types of insurance coverages. The benefit of BOPs is that it’s cheaper than buying the insurance policies individually. A typical BOP includes property insurance, business interruption coverage, and liability coverage. For most businesses like retailers, buying BOP makes sense.