Which Type of Insurance Is Best for Your Business?

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Insurance protects your business in many ways — for instance, if your employees or customers are harmed in the course of doing business with you, or a tragedy such as fire befalls your business. 

Insurance is not only reserved for people but also for businesses. When you insure your business, you are not only protecting your business, but also others as well.

There are some business activities that you must have insurance cover for such as workers’ compensation which is mandatory in most states of the union.

Types of Business Insurance

  • Workers compensation insurance
  • Professional indemnity insurance
  • Business contents insurance
  • Personal accident insurance 
  • Product liability insurance
  • Business interruption insurance
  • Employers’ liability insurance

How to Choose the Right Business Insurance 

Do a thorough examination

Take your time to thoroughly examine insurance packages, customer support, package features, national availability, and so on across several providers and see how they stack up against each other.

Nationwide availability

You have two options when choosing an insurance package for your business – either go with a regional insurance provider or a national insurance provider. Insurance policies with nationwide availability can ride on the sheer power their economy of scale provides to offer affordable premiums and they are also able to absorb any financial shockwave without affecting their customers. 

Go for Business Owner’s Policies (BOP) at first

A Business Owner’s Policy is specifically created to provide holistic coverage for small businesses. It covers almost everything. If you are a small business with an annual income of $5 million or less, have less than 100 workers, and have businesses property that needs protection, then BOP is a good package to start with. 

Compared to a more customised policy, BOP is cheaper. So, you also need to take the cost into consideration and determine if you can afford it in the long run.

Consider special BOPs

Many insurance companies provide BOPs with additional coverage options specifically designed for some industries. Each industry has special BOP packages that cover the risks associated with businesses that operate in that industry. For example, there are special BOPs for construction, retail, agriculture, and so on. Special BOP is a good option because it covers bases that might have been left out by strict BOPs.

Read the fine print

Take the time to read through literature provided by insurers to guide you on their offerings. Read from different sources, including customer comments. Also, use online tools designed to help you choose the right insurance package. Doing so will equip you to make the right decision about the right insurance package for your business.

Consider financial stability

Beware! Not all insurance providers have the financial strength and stability to process your claims on time. Examine the financial ratings of insurers and ensure they are in good financial standing. Also, check their reputation online. In choosing the perfect insurance for your business, it’s wise to think long term.

Every business needs insurance because you can never tell when bad things will happen. A good insurance policy ensures that you are back on your feet faster.

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