As a small business owner, you are either self-insured, or you do not have insurance, and you are interested in buying insurance. You wonder what key questions you should discuss with your insurance broker? Running a small business can be complicated enough, when one considers business plans, accounting, employee recruitment, cash flow problems and other matters. Hopefully, this article will be helpful to those small business owners who have other things on their mind already and help them be a bit more prepared to buy insurance.
Any small business owner needs property insurance and liability insurance. Without property insurance, you would not be covered for damage to your space or business equipment. What would happen if an important part of your property were damaged by a tornado? What would you do if someone sues you if he was damaged by one of your products or after he falls at your business-if you do not have liability insurance?
Some of the things you need to discuss with your broker before getting property insurance are the things a policy would cover. You need to know if your insurance provides coverage if there is damage to:
• Your buildings or other structures, whether you own them or they are leased
• Your supplies, equipment, and furniture
• Money and securities
• Accounts receivables' inventory
• Any improvements you have made
• Any machinery
• Computers and other data processing equipment
• Any valuable papers or books
• All vehicles
• Satellite dishes
• Signs and other items not attached to the building
• Trademarks and other intangibles
Liability insurance should protect you against bodily injury suffered by customers, any damage to the property of others, personal injury, slander and libel, and false and misleading advertising.
The premiums you might pay can vary greatly from company to company, so it pays to shop around for the best insurance. How much you pay might depend on the age of your building, what your building is used for, the local fire protection available in the area, the deductible you choose, and how much insurance you buy. You can expect to pay $250 to $500 of every claim of loss you may make, because of your deductible.
It is rare for the self-insured small business to not also have some other coverage, because commercial insurance usually provides the best protection. Many companies offer quotes for small businesses. You should not only consider all the things the policies will provide and the deductibles, but the reputation of the insurance company. Do you know anyone who uses the same insurance company for his business? What does he think of the company? Does the company have a reputation for paying claims quickly? Or you can always go with a big established names; they have agents practically all over North America.