Whether you’ve just turned your side hustle into a small business or you’re running a small construction firm with an office of 25, getting the right insurance cover is crucial. You never know when there could be an issue, so it’s best to get on the front foot and be prepared.
After all, no matter how careful you are, accidents happen, mistakes get made and people may file complaints out of anger or spite. Without insurance, one bad situation could put you out of business for good.
Despite these worries, business insurance doesn’t have to be confusing or difficult. This guide explains how it works and how to save money on it.
When shopping around for insurance, you need to know what you want in order to get the best deal. Here are some simple checks to consider when looking for the best business insurance provider for your business:
1. Determine your business risks
No two businesses are exactly alike. Different businesses naturally have different risks. Determine the issues you are most likely to face that insurance could protect you from. If you have employees, what would happen if they were dishonest or injured? Do you have a product or service people might be unhappy with? How vulnerable are you to a theft or disaster?
2. Compare policies that cover your risk
Once you’ve figured out the risks, you can choose a policy. You might need one of the three main kinds of business insurance or some combination of the three. Figure out what special circumstances apply to your business. Are you building homes or moving merchandise? This determines which extras you may need.
3. Picked a policy? Now look to see what you are covered for exactly
Make sure you understand the policy you’re taking out. Are you covered for the worst situations? Is your insurance limit high enough to cover your most valuable assets if they get damaged or stolen?
4. Check what’s not covered
This is almost more important than what you are covered for. Every insurer places caveats on claims. These are situations and circumstances where they won’t acknowledge a claim. For instance, your claim will not be fulfilled if it includes unoccupied buildings or premises, damage from natural disasters (e.g. lightning, earthquakes, etc) or obsolete equipment that is no longer used in the business. Investigate these carefully before taking out a policy.
5. Consider an insurance broker
Spending money on an insurance broker can save you money overall. Finding the perfect policy can take a long time and can cause a ton of stress. Even after all this, you might end up with an inadequate or over-the-top policy.
Insurance brokers can walk you through the process, assess the biggest risks your business is likely to face and choose the best policy for you.
This guest post was written by Richard Laycock, Insurance Editor at finder.com.au