As an entrepreneur, you hope for the best, but you have to be prepared for the worst. That is why you need business insurance. It can help you salvage your company and your income in case a disaster strikes. Now you can select from a wide variety of customisable products offered by many insurers. Use the following simple rules for making the best choice for your business.
1. Make it comprehensive.
If you are underinsured, the money which you spend on a policy will be wasted. It is always best to provide for all possible risks. The comprehensive business insurance should include asset cover and revenue cover. It should feature product or professional liability cover and public liability cover. The commercial auto cover is mandatory in most states.
You must provide for any specific risks as well. For example, if there is a risk that your company's facility may release pollution into the natural environment, you must get a liability cover which is especially designed for the purpose.
2. Buy only as much as you need.
There is no need for buying more coverage than you need. You should not remain underinsured either. The optimal cover amount is determined on the basis of risk and wealth. The best way to calculate how much cover you will require is to look into your net worth, revenue and profit. You should take into account the size of your business, the products which it offers and the clients that it caters to.
3. Go for flexibility.
You would want to be able to modify your business insurance policy in the future when your needs change. You should be able to purchase more cover without restrictions. You should be entitled to modifying the list of covered assets on a regular basis. This applies to all types of assets including moving vehicles. The insurer should be willing to lower the premium which you pay if you take effective measures for lowering risk.
4. Be careful with any extras.
Additional benefits such as specialised employer liability coverage and a 24-hour helpline are quite attractive. However, before you sign up for them, you have to check how much they will cost you. If the cost exceeds the benefit, then you may want to opt out of an extra feature which is offered to you.
5. Get it from a reliable insurer.
The insurance company must have a high independent financial rating, preferably A or A+. It must have excellent customer service based on speed and professionalism. It must have good reputation in its own industry and in your industry as well.
You can now go shopping for the best business insurance.