Small businesses are the backbone of the American economy. Between 1995 and 2020, small businesses created up to 62% of jobs in the private sector. They also account for up to 44% of the economic activity in the United States. But what happens when a small business owner is faced with a disaster?
A fire, a theft, or an accident can quickly put them out of business. That’s where insurance comes in. Insurance can help protect your business from financial ruin in the event of a disaster. It can also help you recover faster if something does happen.
But insurance can be challenging to understand. There are so many different types of policies and coverage options available. Knowing what type of policy is right for your business can be tricky. And once you have a policy, it can be difficult to understand how to get the most out of it.
To help you out, here’s a short list of tips to help you get the most out of your insurance policy.
Shop Around for the Best Rates on Insurance
Different insurance companies offer different rates and coverage options. It’s best to shop around to find the company that provides the best rates for the coverage you need. You can get quotes from different insurance companies by calling their hotlines or going online.
Failure to shop around and compare rates could cost you hundreds or even thousands of dollars over the life of your policy. You can save money and give your business the best coverage by taking the time to do your research.
When shopping for insurance, consider your business’s needs. Make sure you’re getting the right type and amount of coverage. Don’t sacrifice coverage in an attempt to save money. A policy with too little coverage could leave you with massive bills if something goes wrong.
For example, you run a small home-based business. You might not need the same type of insurance as a large manufacturing company. However, you will still need some form of protection. This can include property insurance, liability insurance, and product liability insurance.
Bundle Your Insurance Policies Together
One way to save money is to bundle your policies together. Many insurance companies offer discounts if you have more than one policy. This is since it costs them less to insure multiple policies with the same customer.
For example, you could bundle your business’s liability insurance with your property insurance. Buying different insurance coverage from the same company allows you to take advantage of these discounts and save money on your premiums.
Bundling insurance policies also make it easier to manage your coverage. You’ll only have one insurance company to deal with and one bill to pay each month. This can save you time and hassle in the long run.
Don’t Be Afraid to Ask for Help
When something goes wrong, it can be challenging to know what to do or where to turn. This is especially true when it comes to filing an insurance claim. Businesses often find it challenging to maximize their insurance benefits in times of trouble. By seeking the help of a reliable professional, they can help you navigate the insurance claims process. They can also negotiate with insurance companies on your behalf to get you the best possible settlement.
For example, your business suffered property damage caused by floodwaters. You submit a claim to your insurance company, but they deny it. An insurance attorney can review your policy and help you understand why your claim was denied. They can also negotiate with the insurance company on your behalf to get you the compensation you deserve.
The key is finding a reliable attorney specializing in these types of claims. This way, you can be sure that you get the help of an experienced professional who knows how to handle such insurance claim. They can discuss your current options so you can recover all applicable insurance benefits.
Learn the Best Ways to Paying Your Premiums
You can pay your business’s insurance premiums in different ways. Some businesses pay their premiums monthly, while others pay quarterly or yearly.
Paying your premiums on a monthly basis might be more expensive. Still, it can also offer flexibility if you have a tight budget. Paying your premiums quarterly or yearly can save you money, but you must have the cash on hand to pay the entire premium upfront. If you can, choose the latter for the biggest savings.
You also have the option to increase your deductible. This means paying more if something happens, but it will also lower your premiums. Doing so will obviously lower how much protection your policy offers, so make sure you have the cash on hand to cover the increased deductible.
Review Your Policy Regularly
Your business’s needs can change over time. As your business grows, you might need to add or remove coverage. Reviewing your insurance policy at least once a year can help ensure that you have the right amount and type of coverage for your business.
For example, you might have purchased a new equipment for your business. If your insurance policy doesn’t cover this new equipment, you could risk losing it if something happens. Reviewing your policy regularly can help you catch these changes and ensure that your business is always adequately protected.
Make it a point to review your insurance policy at least once a year. If there are any recent changes to your brand, choose to update your policy immediately. Doing so could save you a lot of money and headache in the long run.
You invested in your brand’s insurance policy, so you might as well optimize your benefits. Following these tips can help you get the most out of your insurance policy and save you time and money in the long run. Doing so can help keep your business protected in the event of an unforeseen incident.
