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Tips for Choosing the Best Small Business Insurance
So you’ve removed the shackles of your corporate job and have decided to take the plunge and start your own small business. Starting a small business comes with many risks, but the rewards can make it all worth it. You are probably focusing on implementing your business plan, getting your website online, hiring employees, branding and marketing and locating a suitable office space. One of the last things you may be thinking about is small business insurance, but it’s just as important to focus on insurance as the other aspects of opening a small business.
Small business insurance is extremely important and even a necessity if you are employing others. You need to protect your business assets, employees’ health, and property. Read further to learn about tips for choosing the best small business insurance for your business.
There are many ways you can save money on small business insurance, photo credit you-x-ventures on unsplash
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Determine How Much Insurance You Need
You don’t want to waste money by being over-insured, but at the same time, you don’t want to bear the risk of being under-insured. Take the following steps:
Make a list of all the things related to your small business that you will require insurance for against loss or lawsuit such as inventory, equipment, vehicle, business premises (owned or rented), employees and customers;
If you are a small business working from home with no employees, you may be able to get an upgrade on your home insurance policy. If your business has assets stored at your business location including home-based businesses, you will likely need contents insurance. This is a separate insurance policy from your home contents insurance policy;
If you have even one employee, you will likely have to register with the Workers’ Compensation Board and pay Workers’ Compensation Insurance premiums. This protects your employee(s) if they are injured on the job;
If you plan to use your vehicle for business, you must advise your insurance company of this change since a standard auto insurance policy will not protect you or staff driving your vehicle in the event of an accident. Your insurance company or broker will sign you up for a commercial auto insurance policy.
In order to prevent accidents and losses, you should obtain General Liability insurance that will insure you in the event that employees, customers or visitors to your property incur an injury on your property. This could include a courier slipping on your walk or a skincare treatment you have provided to a customer that has caused an infection. Your home insurance policy does not cover work-related claims on your home property. You should take the additional steps of maintaining your property to ensure it is safe. If you are renting your business location, you may want to look into getting Tenant’s Legal Liability insurance to protect against damages and accidents. Your landlord’s insurance policy may not provide coverage for damages or accidents that occur at your business on his/her property.
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Save on Insurance Premiums
Here are several ways you can save on your insurance premiums:
Ask your insurance company or broker if there are ways to reduce your small business insurance premiums. For example, you may receive a reduction in premiums for installing a security system at your small business;
You may be eligible to receive a discount on your insurance policies if you have more than one type of insurance policy with the same insurance company;
If you can afford to, increase the deductible on your small business insurance policies. This will lower the cost of annual premiums, although keep in mind that should you make a claim, you will have to pay a higher amount upfront.
Another great way to save on insurance is by signing up with Canadian company, Foxquilt. This Canadian insurance tech company has built an online recommendation system for home, business and automobile insurance products. Foxquilt brings people together so that they can save on insurance through the power of group purchasing. Like-minded consumers and businesses are grouped together so they can save time and money researching and purchasing the most ideal home, business and auto insurance products. For example, if you are starting a new side business, you can join Foxquilt’s Side Hustlers’ group to enjoy the benefits of group purchasing power to save on high quality insurance products. If you are a dog or cat owner, you can join Foxquilt’s Pet Lovers’ group. Foxquilt currently has over 40 groups and is continually adding new groups on a regular basis, it opens this unique opportunity to many Canadians who need insurance.
When it’s time to renew your insurance, shop around for the most competitive insurance rates.
Should you launch a new product line or hire additional employees, you should report these changes to your insurance broker/company to ensure you have adequate coverage.
There are a lot of aspects to consider when choosing small business insurance. Hopefully these tips will help you optimize the insurance that is needed for your business.
You might also be interested in reading, “Getting a Mortgage if You Are Self Employed“.
