How to Find the Right Insurance Strategy for Your Business

Starting a business is an exciting time. But, as your business starts to grow, you may find that it needs a certain level of insurance coverage to survive. In this post, I’ll show you the process for finding the right strategy for your business.

No matter what type of insurance you have now or if you’re looking to start a new insurance plan, there are three steps that can help guide you through the decision-making process.




Taking a Look at Your Business


Before you can begin to find the right insurance plan for your business, you need to take a look at your business to determine what type of coverage you need. This first step is often overlooked because many business owners are afraid to take a look at their company.


But once you do take a look at your company, you will quickly realize that your business insurance is not likely to cover all of your needs.


Do you really need standard business insurance?


Standard business insurance protects your business against everything from cyberattacks to fire. It can help you recover quickly if you are impacted by a natural disaster.


But many business owners think that standard business insurance will cover all of the unknown risks they face in the day-to-day of running their business.


Defining Your Insurance Needs


Before you begin to hunt for insurance, you’ll want to identify the needs of your business.


What are the risks you’re trying to protect against?


How do you plan to mitigate risk?


Do you have employees?


These are the basic questions you’ll want to answer before shopping for an insurance plan for your business.


Types of Insurance


There are many types of insurance for your business. Many require you to create a policy or purchase coverage directly through an insurance company. However, other types of insurance can be purchased directly from your business, whether you’re self-employed or have employees.


Starting to Research


If your business doesn’t need insurance now, it’s time to start researching the insurance options. When you start to research what you need, you’ll know what to ask insurance companies.


You’ll also be able to get the best quote you can. But, don’t spend too much time looking at pricing and too little time researching how much coverage you actually need.


My first step when starting to research is to look at the competition. What are your competitors paying? How do they compare? What types of coverage do they have?


You should compare what others are paying for insurance so you can see what is available at your price point. Then, start with a second step to find the right policy for your business.


Finding the Right Coverage


For starters, what kind of insurance coverage is right for your business? While there are different types of insurance for a variety of business purposes, there are also broad categories of insurance that cover most businesses. They include…


Accident and Health Insurance


Business Theft Insurance


Business Disaster Insurance


Business Liability Insurance


Property Damage Insurance


Business Equipment Insurance


Business Credit Insurance


Business Travel Insurance


Rental Car Insurance


Workers Compensation Insurance


Credit Counseling


Legal Consulting


Bankruptcy


In addition, there are two other categories of insurance that are beneficial to you and your business.


The Importance of Deductibles


Any business can provide you with the value it brings to your life, but that doesn’t mean that you want to be held financially responsible for it should anything bad happen to your business.


The traditional business insurance industry is built around the concept of “no liability,” which is basically the premise that the business will cover any and all losses if there’s an incident that might result in a claim. And so, the very thing that makes that system great is also what makes it a risky model.


If you want to minimize the risk of business accidents or other risks, you can’t have a business that’s 100% self-insured. Deductibles are an important part of insuring the business.


Getting Onboard with a Satisfactory Agent


We often get asked what business insurance products to choose. How do you find a good insurance plan for your business? Before we begin to discuss those options, let’s talk about the wrong ones. What is a bad insurance plan?


The biggest problem with small business insurance is the price. Most small businesses don’t have the cash flow to spend on expensive insurance products. Why would you invest in insurance products that cost you more than what you’ll earn over the next year? Don’t fall into that trap.


Another problem is the types of insurance products available. A good insurance plan should cover your needs without taking away too much of your budget. The most common type of small business insurance products is property and casualty.


Conclusion


Hopefully, the above process will help you find the right insurance for your business. When you’ve established what your risk is, you can focus on what type of coverage best suits your needs.


Once you have coverage for your needs, take the time to review and ensure it fits your specific needs.


The final step to making sure your business is properly protected is to make sure you take the necessary steps to make sure your business is protected.


This article was written by Mario McKellop for Small Business Pulse


As a small business owner or manager, you know the value of working with a trusted business insurance agent. Many insurance plans provide discounts for working with agents. Others may give you a flat fee or a percentage of the premiums.


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