Small business owners need to watch every dollar they spend, especially when they are in the early stages of setting up and growing. When they look at the list of essential items that they’re spending money on, insurance could be one of the large components.
For many start-ups and small business owners, this may seem an area where they could make savings by taking a few calculated risks so that more funds can be channelized towards operational costs.
However, this approach carries its own inherent risks and a single lawsuit or damages claim could spell disaster for a fledgling enterprise.
So what’s the optimal strategy – where you can save insurance costs yet have the coverage you require? Getting the right small business liability insurance can give you peace of mind and the protection you need.
What is Business Liability Insurance?
It is a category of insurance coverage that protects businesses (rather than individuals) and offers comprehensive risk management services to your enterprise against different types of threats, losses, injuries, and damage. It protects you against natural calamities, income loss, thefts, injury and illness of employees, contract dispute, sabotage, judicial proceedings and other unexpected mishaps.
There are several different types of business liability insurance coverage for professional liability, property, home-based business, product liability, vehicle insurance, business interruption, third-party liability, lawsuit coverage, copyright security, advertising liability, and worker’s compensation, with certain inclusions and exclusions.
How to Save on Small Business Liability Insurance
The costs are based on your coverage needs, the inherent risks in your area of business, type of industry, claim potential, size, location, payroll and the legal requirements.
- Analyze your real needs: Check the risks and requirements of your business and what the general policy limits could be for a case such as yours. Two businesses, even in the same industry, may differ widely. Don’t purchase the coverage you don’t need. Ensure that you have the minimum basic coverage, such as General Liability and a Business Owner’s Policy that can cover your property as well. If you operate vehicles for your business, take out coverage for owned, non-owned and hired transportation. If you use online platforms take a cybersecurity insurance policy.
- Comparison Shopping: Though cost should never be the only criterion on which to base your purchasing decision, you can shop around to compare prices, packages, bundles, facilities, discounts, features etc. The insurance industry has more or less standardized rates across the board. It’s a wise policy to be over- rather than under-insured, but working with an experienced, reliable and reputed broker or insurance company helps you to get a tailor-made package to suit your unique requirements.
- Choose the right agent: Small business-owners would find resonance in working with independent, local agents who understand the terrain best. Independent agents also have access to multiple insurance companies and are in the best position to offer unbiased, objective advice. Ensure that they have experience in working with your specific type of business.
- Flexibility: Check whether your insurance company offers flexible payment options. Some of them offer substantial savings on a lump-sum annual payment or they may offset installment fees against automated or electronic payments. In other cases, paying larger amounts can save additional billing fees on every payment. You can also save through claims-free discounts, installing loss-prevention/safety measures and group rates.
Save on Your Small Business Liability Insurance
Your business has unique needs and risks. The good news is that you can save insurance costs and still have the coverage you need. Speak with an experienced agent to get the right coverage for your business.
For more information visit smallbusinessliability.com