Insurance is one of the most important investments for small businesses. And, sadly it is the one investment that often gets overlooked at the very beginning. In fact, a recent survey of 30,000 business owners found that 44 percent of responding businesses have never had insurance at all. This is not a good option, as taking on this type of risk can end up costing your business far more than a monthly insurance premium would. So, in addition, to opting for state required insurance policies it is also prudent to get some others that will protect your business from a whole variety of issues.
And this article is here to help you sort out the entire process, and offer you some valuable insurance tips.
1. Don’t do it on your own
This is probably the most prudent advice you can get. If you are not familiar with insurance policies it is far better to consult an expert, someone who can provide you with a clear picture of what your options are along with helping you decide which policies are a must and which you can afford to forgo.
Now, someone working for an insurance company might not be the best bet. It is far better to hire an independent insurance broker, who can swiftly lay out the options you can choose from. This step will save you both time and money, and not to mention a headache of trying to understand why is one option better than another. This step can help you avoid possible finance mistakes that plague new small business owners.
2. Consider your insurance an investment and not an expense
This might help with the mental aspect of the process. If you take into account the money you can save if something goes wrong and compare that with the amount you put aside for insurance on a monthly basis the maths is clear. Especially if you know that bit more than 50 percent of small businesses fail in the first four years, it is important to stay realistic and protect your investment.
So by choosing the right type of insurance for your business, you will be able to protect yourself, your employees and your company from numerous liabilities plaguing small business owners.
3. Stay flexible
The insurance you have chosen at the very beginning might not be the best suited for your business in a year or two. This is what it is important to renew and change policies as your business evolves. In time you will have more inventory, a larger number of employees and different operations set to help you run your business better. From production management software to convenient personalized payroll cards that can speed up your day-to-day processes.
A lot of these things will have an impact on the way your small business operates, and you need to be able to adjust your insurance policies accordingly. And, in most cases, the premiums will go down as you will be more secure when it comes to the safety of your business. There is this insurance agent tx notes to make sure you sit down with your insurance broker every year and see what changes can be made to improve on your small business insurance options.
4. Don’t forget
The final tip is definitely the most obvious one. You can’t afford to pay. As a small business owner who is just starting out insurance is probably near the bottom of your list of priorities. And this can end up costing you a lot of money, usually sooner rather than later. Especially if you don’t consider liability insurance when launching a new product.
So, if you take into consideration that 77 percent of small businesses rely on personal savings for their initial funds, that means that any lawsuit regarding your product or service will have to be paid from your own pocket if you neglect insurance. And most small business owners don’t have those costs calculated into their budget forecast which can lead to foreclosure.
When you are preparing the expense plan for your small business, make sure you include insurance, and make sure it is near the top of your list, because there is a good chance that it will be your only line of defense when it comes to tackling issues that plague almost all new small business owners.
There you have it, four easy to follow tips when it comes to deciding on insurance for your small business. Your broker will help you find the best premiums as well as the types you need for your business industry. All that is left is to ensure that your payments are regular, and then simply relax a bit fully knowing that your business is protected.