Many business owners fall into the trap of not getting the appropriate business Insurance coverage. Let’s elaborate that statement further. It is not enough to ensure your that the insurance should be your safe end. That is your business cover should be something that encompasses all possible scenarios. Like it is possible that your Super Store is on fire by a single spark or you’ll wake up in the morning and find your corporate vehicle, not in the parking lot. Possibilities could happen anywhere. But you can be safe if you’ve chosen the right insurance policy for your business.
The first step in determining the right business insurance for your enterprise is conducting a thorough audit of your entire business operations from start to finish. Make sure that no stone is left unturned. If you’re the owner, there’s a high probability that you may not be aware of everything that is happening in your daily business operations, so it is best to bring in all your managers as well as the key employees to ensure that you don’t miss anything. And ask them to brief the problems they are facing and how do they tackle them.
Here we are telling you the four major types of Business Insurances
The first category is probably the most common – business property insurance. This type of insurance will give you monetary reimbursements if your business properties include your office, your tools, equipment etc were damaged or destroyed.
The second general classification of business insurance is liability insurance. If you injured a person or damaged a property during the conduct of your business, this type of insurance will take care of that. For example, if you’re a restaurant owner, and someone slipped within your restaurant because of a spilt drink, you can use your public liability insurance to cover for the victim’s hospitalisation expense.
The third is the automobile insurance which is basically similar to your personal car insurance. It will cover the damages inflicted on your company vehicles including those resulting from collision accidents.
Lastly, the umbrella insurance does not play a specific role. Rather, it extends the limits of your other insurance policies. It may also be used to cover other things beyond those which are covered by your liability, property and automobile insurance policies
Choosing the right policy
Choosing the most suitable insurance for your business, taking into account the nature of your business is very important. While purchasing business insurance, you need to consider things like products and services you offer, the customer base, availability of raw materials, whether the product needs a new design or any other issue that may potentially be a risk factor for your business.
Mistakes to be avoided
Every business has its own risks. You should not underestimate the risks your business may face. However small the risk is, you should purchase the right type of insurance for your business. Purchase the insurance even if your company finances are good enough to withstand the risk like must insure your equipment and the tools by taking tools insurance.
Don’t mistake low priced policies for cost-effective policies. The low premium might be because the risk it covers is low. If this is the case, it might be troublesome to you in the event the expenses of compensation exceed your policy cover. It might not be able to protect you completely.
Avoid purchasing a smaller cover for your business. In case of higher deductibles, you will have to spend a huge amount from your pocket. A deductible is an amount that the policy holder has to pay before getting compensation from the insurer.
Avoid under insurance, it may lead to considerable loss to your business. This is because under-insurance cannot cover all the expenses that you have to bear in the event of claim. Purchase an insurance cover like tools insurance for the business that is adequate for your business.