Having an adequate amount of and the proper type of insurance are key to making your dream of owning a small business a reality. Failure to purchase a sufficient amount of insurance or the right type of insurance can turn your dream of owning a small business into a nightmare. There are many things to consider when engaging in the long and complicated process of purchasing insurance. When considering insurance from a company like Zuma Insurance, small business can benefit from the following essential insurance tips.
Identify Your Risk
Insurance is all about mitigating risk. You need to know what your biggest risk is and then based on that find the coverage that is right for you. For example, if your business is primarily performed online, you’ll want a plan that focuses on protecting you from cyber-attacks. Conversely, if you have a brick-and-mortar store, you may be interested in product liability.
Protect Your Home Business
You have a home-based business, so you don’t need insurance, correct? Wrong. Many have home-based businesses where they sell products that are stored in their garage or in their basement. If their home burns down or if there is a flood, it is unlikely that their homeowner’s policy is going to cover business supplies. That’s where home business insurance comes into play.
If you have a home-based business that offers advice to clients, you may want to look into E & O insurance coverage. Also known as errors and omissions coverage, this coverage is designed to protect you if other people suffer a loss because of the advice you gave them.
Understand That Insurance Needs Change
A big mistake that you could make is becoming complacent with your coverage. Just because you are satisfied with your coverage today does not mean it is going to be adequate for your small business tomorrow. State regulations change, your business may grow in size or shrink, you may get new employees, or you may branch out into a different field. All of these things will require you to reevaluate your business insurance. Regularly communicate any changes to your insurance agent to make sure that you are adequately covered.
Find an Agent You Can Trust
Don’t settle for just any insurance agent. Find one who you can trust. Remember, you are entrusting this individual with the future of your business should anything negative happen. Do not be afraid to shop around. Don’t go with the first agent you come into contact with. Find the policies that really work for you. Make sure the company you are working with is reputable and has your best interest at heart.
Take Care of Your Employees
In any discussion of insurance for business owners, one would be remiss if they did not discuss the importance of taking care of your employees. Although the requirements of workers compensation vary from one state to the other, and even though it is not legally required in some areas, it is often a good idea to purchase it. If you take care of your employees, they will take care of you.
In this regard, it’s good for you to familiarize yourself with what constitutes an employee in your state. If you work with outside contractors, you’ll want liability insurance that covers them, as you may be found liable for any damage or mistakes they cause.
Finding the right insurance for your business is an involved process. Whether you are looking for vehicle coverage, liability insurance, or health coverage, there are many things to consider. That being said, if a situation arises that requires you to rely on your insurance, you will be happy you took the time to make sure you got it right.