Every business faces unique risks, and thus insurance needs vary from one enterprise to another. It’s, therefore, important that you invest sufficient energy and time in evaluating your business insurance needs to choose the right coverage options. Here are some tips to get you started.
Review Your Coverage Periodically
A common error that business owners often make is renewing their insurance coverage without considering their business’ changing needs. For instance, you should increase the limits of the insurance policy that covers income loss if your business has expanded. When you purchase new assets such as machinery and automobiles, you should also consider increasing your coverage. By being vigilant with your insurance needs, you will always have the necessary insurance coverage and effectively manage your insurance costs.
Points to Keep in Mind Before Buying Insurance
When assessing your business insurance plan, you should ideally work with a professional. An insurance agent can help you evaluate your needs and craft the most suitable and cost-effective insurance plan for your business. An agent’s input can help you reduce your insurance expenses and determine the suitable amount of insurance coverage. Here are some of the things you should consider in the process:
- Consider getting an umbrella policy – This policy adds extra coverage on top of your existing singular policies and it covers some risks that may not be covered including slander, libel, and false arrest.
- Disaster insurance is vital – Also known as catastrophic insurance, disaster coverage covers natural disasters including hurricanes, floods, earthquakes, as well as man-made catastrophes, such as terror attacks. Standard policies often don’t cover these perils.
- Errors and omissions coverage – This is a professional liability coverage that kicks in if you’re sued due to inadequate work or negligence.
- Cybersecurity coverage – This insurance protects against cyber-based risks like data breaches. Your policy may also cover the cost of investigating the breach. It may pay for the business losses resulting from the data breach and the associated damage to reputation.
- Saving by purchasing an affordable online policy – While you may save some money by getting the cheapest option, this strategy may backfire if the coverage comes with conditions that you don’t understand, leading to gaps in coverage.
How to Save on Insurance Premiums
Your insurance costs are hinged on various factors. These include:
- Location – The crime rate in your area, as well as the conditions of your premises (such as security features and the state of your electrical system), can increase your premiums. You can lower your rates by enhancing the security and safety standards in your building.
- Claim history – You may pay higher rates if you have a history of making multiple claims. It may, therefore, be more prudent to pay for small losses out of pocket instead of making claims that can ultimately increase your insurance costs.
- Driving history – The driving history of the people who drive your business vehicle can lead to higher premiums for your commercial auto insurance coverage. Ensure that your drivers have a satisfactory driving history.
Other factors that may increase your insurance costs include poor credit score and gaps in coverage because of non-payment.
You can only determine your insurance needs by evaluating your risks. At Premier Risk, LLC, we will help you find cost-effective business insurance policies that suit your unique needs. Contact us today to get started on your customized coverage.