Why is insurance so important for your business? Does insurance offer any other benefits besides for protection? In today’s blog post we would like to discuss the topic of insurance and your business.
Business insurance is something nobody wants but everybody needs. If you’ve already read all the posts from our blog and still consider whether you should get business insurance or not, just imagine a situation that a customer sues you for financial losses. If it’s a large company, this may mean thousands of dollars. If you aren’t insured, it will probably cost you your business. Don’t you think that it’s better to pay $500 a year for business owners policy that will protect you against such claims than worry all the time about potential lawsuits?
Another benefit of business insurance is that it shows that you have a business understanding of the industry in which you operate. Some customers may require you to have professional indemnity insurance or other type of insurance. If you don’t have it, they may find a different company to work with. Business insurance is not only an expense – it may help you make more money.
There are some types of insurance that you don’t need to operate, but that can help you grow your business. One type of such insurance is health insurance. If you offer good health insurance to your employees, they will be more eager to stay in your company for the long term. The more benefits you offer to your employees, the more likely it is that you’ll attract great employees to your company (and that’s one of the keys to success in business).
You never know when a crisis is going to happen, and that’s why you should never wait – get all necessary policies today and stop worrying about potential lawsuits, compensatory damages, costs of defending yourself, etc.
There are hundreds of insurance companies in the United States alone. How to choose the best one? Below are some of the most useful tips that will help you find the best insurer for your company.
1. Read online reviews
The easiest way to check whether you should deal with a specific insurance company or avoid it is to read online reviews at independent websites. Many people leave reviews online, so take the advantage of it and read as much as you can about your potential insurer. Please keep in mind that a couple of negative reviews don’t necessarily mean that your potential insurer isn’t a reputable company. People who had a negative experience are more likely to leave online reviews than people who are satisfied with the service.
2. Get help from insurance brokers
Thanks to the Internet, you no longer have to waste hours researching different insurance deals. You just need to find some online insurance brokers, fill out a simple form and in a few hours you’ll get the best quotes for your business insurance. Since insurance brokers provide their services for free, get quotes from several brokers to get the best deal possible.
3. Tailored policies
All professional insurance companies offer tailored policies, e.g. plumber’s insurance or insurance for a software developer or professional liability insurance cost . If your potential insurer makes it hard to get a tailored policy or wants to charge you additional money for it, find another company.
4. Past work coverage
The best insurance companies cover unknown claims that arise from work completed before you were insured with such company (back to an agreed date, called a retroactive date). Find a company that offers retroactive date as a standard.
5. Flexible payment options
You should be able to choose whether you want to pay for your policy monthly or yearly. Flexible payment options are a must for companies that have to manage their cash flow very strictly.
There are many things that you should check before you sign an insurance policy. Below are some of the most important things you need to review.
Your insurance policy has to address all risks your company faces. If it doesn’t, you’ll be exposed in certain cases. Before you sign a policy, make sure that your insurance agent has included all eventualities. If you want to purchase professional indemnity insurance, always get a tailored policy. All professional insurance companies offer tailored policies as a standard.
2. Policy limit
As we already mentioned it in some previous articles, make sure that the policy limit is high enough to cover all potential lawsuits. Your insurance agent should be able to calculate what policy limit you should have. If you can afford it, get a higher policy limit just in case.
If you want to save money on your insurance policy, get a higher deductible. However, this increases your risk, so you should calculate whether it makes sense to save money for less protection.
4. If you have any doubts…
If you have any doubts regarding your policy, it’s a good idea to have a lawyer review it. You can also ask another insurance agent to review it. If you’re buying a business owners policy, it will cost you a lot of money, so paying money to get someone to review it may be a good idea to make sure that you’re really getting the best deal.
Premiums depend a lot on your company. Your industry, revenue, employees, customers, products, etc. all play a role in determining how much an insurer is going to charge you for insurance. If you use some risk management practices in your company, don’t forget to share them with your insurance agent. Insurance companies reward businesses that use such practices with lower premiums.
There are many types of business insurance that you should consider buying. Today we want to share with you some of the most common types of business insurance you should know about.
1. Public liability insurance
Public liability insurance is a must for all businesses. It will cover legal costs related to accidents and injuries suffered at your property. You need public liability insurance to protect yourself against payments as the result of injuries (and medical bills), property damages, libel, slander and of course the cost of defending yourself.
2. Professional liability insurance
As we already mentioned it in several of our posts, professional liability insurance is one of the most important types of business insurance. If you provide a professional service or regularly give advice to clients, you need to purchase professional indemnity insurance in case you make a mistake or omit something. We all make mistakes, and one such mistake can cost you your business.
3. Product liability insurance
If you manufacture, wholesale, distribute, and retail a product, you may be liable for its safety. If your product causes injury, bodily harm or financial losses, you can be sued for compensatory damages.
4. Commercial property insurance
Property insurance covers everything related to the loss and/or damage of your company’s property (buildings, lost income, equipment, company papers, etc.) as a result of fire, smoke, vandalism, etc. There are all-risk property policies that cover a wide-range of incidents and perils except those noted in the policy and peril-specific policies that cover losses from only those perils that are listed in the policy. Keep in mind that you will need to get a separate policy for earthquakes and flooding.
5. Home-based business insurance
If you work at home, you should still consider getting an insurance. In your case, it’s home-based business insurance. Your basic home insurance won’t protect you in case someone visits you for business purposes and something happens to him.
Today we will discuss some additional aspects of professional indemnity insurance. Here are some useful tips and some of the most important things you need to take into consideration if you want to get professional liability insurance:
1. Policy limit
Your insurance agent will be able to calculate how much protection you need. In general, if you deal with companies that can lose a lot of money because of your mistake, you need to have a higher policy than a person who provides advice to individuals.
The higher your deductible, the lower the cost of professional indemnity insurance is. However, this means that you will pay for more lawsuits out of your own pocket. Consider what is more important for you.
3. Gaps in coverage
Never ever let your coverage expire. If you don’t renew your coverage on the same day it expires, you are no longer protected by your insurer.
4. Retroactive date
If you have never had professional indemnity insurance before, you should purchase a policy with a retroactive date. This means that your insurer will pay for any lawsuits that are related to the work you provided before signing the current insurance policy.
5. Ask for quotes online
The easiest way to save money on your professional indemnity insurance is to ask for quotes online. There are hundreds of online insurance brokers that will find the best deals for you – all for free. These companies get paid by commissions, so you can ask several online brokers first and compare the rates they offered to you to get the best deal.
Please don’t underestimate the value of professional indemnity insurance. It’s one of the most important types of insurance all professionals should have. Just imagine what would happen if a company you were working with sued you for $1 000 000 in compensatory damages. Get insurance and sleep well at night.
Professional indemnity insurance is one of the most important types of business insurance. If you provide professional services or offer professional advice, you absolutely need to purchase professional indemnity insurance (also known as professional liability insurance and errors & omissions insurance).
Professional indemnity insurance is used by consultants, brokers, lawyers, architects, engineers, plumbers, accountants, financial planners, physicians, software developers, etc. Ask your insurance agent whether you need professional indemnity insurance. If you’re a sole trader providing advice to others, you probably need professional indemnity insurance.
Even if there’s a low risk that someone will sue you, it’s still better to pay for professional indemnity insurance than risk losing your business in case someone sues you for high compensatory damages. Please keep in mind that some customers may request you to have professional liability insurance to complete a contract, so it’s a good idea to already have this type of insurance.
Professional indemnity insurance protects you against many claims such as negligence claims, misrepresentation claims, violation of good faith and fair dealing claims, and inaccurate advice claims. To give you a simple example, if you’re a software developer and the software you provided don’t work the way your customer wanted, and your customer loses money because of it, he can sue you for financial losses he suffered because of you.
Please keep in mind that many professions are required by the state government to carry a professional indemnity insurance. For instance, physicians have to purchase malpractice insurance to be able to practice in certain states. Malpractice insurance is just another type of professional indemnity insurance.
When looking for professional indemnity insurance, make sure to get a tailored policy. Most reputable insurance companies offer tailored policies, e.g. they offer a completely different professional indemnity insurance for a plumber and a different policy for a software developer (because they need completely different types of protections).
Small businesses need business insurance and general liability insurance as much as large companies do. If someone sues you because of a mistake or suffered injury, you’ll have to pay a lot of money in compensatory damages. This can kill your business, especially if you’re just starting out.
Even though business insurance is another cost for your start-up, you absolutely can’t neglect it. If you haven’t started your company yet, find an insurance agent now and ask him to assess all risks that your company will face. Then he’ll be able to make a list of policies you need to have. You should have policies in place right from the beginning. Make sure to get all policies in one package to save money (ask for business owners policy – BOP). Don’t hide anything from your insurance agent – if you don’t provide accurate data, you may get an insurance policy that won’t cover all eventualities.
If you’re a professional, you can consider joining a professional associations. Some professional associations offer discounted business insurance. Use the Internet to find professional associations that you can join and find out if they offer any discounts and other insurance benefits for their members.
If you want to hire employees, consider purchasing health insurance. It will help you recruit good employees who will want to work in your company long term (remember: people are the key to company’s success).
Don’t forget to purchase flood or earthquake insurance if you’re in an area where flooding or earthquakes are possible. One earthquake or flooding can easily destroy your business if you aren’t insured.
Last but most definitely not least, please make sure to increase your insurance coverage as your business grows – many company owners forget about it and pay the price later.
Check the video below for more info about small business insurance:
Hello and welcome back to our FAQ about business insurance. In today’s blog post we will answer more questions about business insurance.
1. Who needs professional indemnity insurance?
Anyone who offers professional advice or provides skillful services should have professional indemnity insurance. A list of professions that need professional liability insurance is very long. It includes professions such as notaries public, real estate brokers, insurance agents, physicians, appraisers, software developers, website developers, architects, plumbers, landscape architects, engineers, attorneys, and many others.
2. What is policy limit and how much do I need?
Policy limit is the maximum amount of costs your insurer will cover for your claim. If your policy limit is $1 000 000, and you’ll have to pay $2 000 000 in compensatory damages, you’ll have to pay $1 000 000. That’s it’s generally a good idea to have a higher policy limit and pay more for your insurance rather than risk paying out the remaining amount of owed money out of your own pocket. Please keep in mind that if you deal with well-known companies who pay you a lot of money for your services, you should have a higher policy limit for your professional indemnity insurance policy.
3. Should I get insurance if I have a home-based business?
There’s a separate type of business insurance for home-based businesses. It’s called “home-based business insurance”. If clients visit you at your home for business purposes, you should definitely invest in this insurance. If you provide professional advice or services, you also need professional indemnity insurance – it doesn’t make any difference whether you have an office or work at home, you still need protection in case you make a mistake.
4. Where to get insurance?
Look for an insurance broker or call insurance companies on your own. Use the Internet to find online insurance brokers – they generally offer the best rates (and don’t charge you anything for their services).
Many people don’t understand how business insurance works or have other questions about business insurance. Get to know our answers to some of the most frequently asked questions about business insurance and related topics.
1. Why do I need business insurance?
You need business insurance to protect yourself against high costs of defending yourself and compensatory damages. If you don’t have insurance, you will have to cover all these costs out of your own pocket. Since many such lawsuits can easily cost your business more than $100 000, one lawsuit alone can lead you to bankruptcy.
2. What business insurance should I buy?
Every business should buy a public liability insurance policy that protects against lawsuits related to injuries suffered at the commercial property. If someone slips at your pub, hotel, club, etc. and he breaks a leg, he can sue you. Public liability insurance will protect you against costs of such lawsuits.
Professionals should also get professional indemnity insurance (also known as errors and omissions insurance and professional liability insurance) that protects against negligence claims. Many companies require independent contractors to have professional indemnity insurance so for most professionals this type of insurance is a must. Please keep in mind that some professionals are required by the law to have this insurance (e.g. physicians).
3. How much does business insurance cost?
It all depends on the type of insurance, your company, revenue, clients, industry, etc. There are many factors that play a role in determining the insurance rates. If you want to find out how much business insurance for your company would cost, just visit several websites of online insurance brokers and you’ll get a free quote in a matter of hours (the best part – it’s all available for free).
Please check our blog in three days for part 2 with even more frequently asked questions about business insurance.
Welcome to our blog! We will write here about different types of business owner insurance. We will share with you both basic information about business insurance as well as tips and other advice on how to choose the best insurance, which insurance you should buy, etc.
In our first blog post we want to share with you some of the most important information about business insurance. Consider it our proper introduction!
What is business insurance and why do you need it? Business insurance is a broad term that is a general term for different types of insurance. Professional indemnity insurance, public liability insurance and product insurance are all types of business insurance. Depending on your business, you either need one, two or more types of insurance. Businesses that require several policies usually buy a business owners policy (BOP) that contains several policies at once.
There are many advantages of business insurance, but the most important advantage is that it protects you in case something goes wrong.
If you lose your shipment of products and you aren’t insured, you’ll have to pay for the new shipment out of your own pocket. If you’re insured, your insurer will cover the cost of lost shipment. If someone slips at your property and you don’t have public liability insurance, he can sue you and if he wins, you’ll have to pay compensatory damages and cover all costs of defending yourself.
Business insurance can also help you get better customers. Some companies won’t work with companies that don’t have insurance – they want to be sure that in case you don’t deliver the service they ordered, someone will cover the costs of this negligence.
Business insurance is a must, especially if you operate in a high-risk industry such as construction.
Learn more about business insurance from the video below: