There’s no way around it – there’s a lot to think about when starting a new business. Between creating your business plan, finding investors, covering your legal bases, acquiring the right location, and hiring employees, a small business owner has a lot to keep track of. However, business insurance is one of the most important investments a small business owner can make. No matter how busy you are, it shouldn’t be overlooked.
Here are some tips to help you get started and understand what you need.
Tips for a New Small Business Owner:
- Start with a Business Owner’s Policy – A business owner’s policy is a package of the major coverages necessary to keep your business protected: Property Insurance, Business Interruption Insurance, and Liability Insurance. From the moment you get your business license, these basic protections are essential.
- Create an Insurance Roadmap – As you go through the process of opening your business, your business insurance needs may vary and grow. You can time additions to your business policy to save you money. For example, you may be able to wait to add Commercial Auto Insurance until you have opened your doors and will begin making deliveries. You may not need Workman’s Comp Insurance until you hire your first employee. Understanding each policy addition and when you need to have it will keep you protected and help reduce cost.
- Don’t Sacrifice Quality for Cost – Money is always tight for new business owners, but shopping for business insurance coverage based solely on the price may be a costly mistake. If something goes wrong while you are establishing your business and you have inferior coverage, the chances of recovering what you’ve invested are remote. Your BenefitSource insurance professional can help you balance the cost with the quality of the coverage to ensure that you find a policy that works for you.
- Be Prepared for an Audit – Generally, when writing a business insurance policy, the insurance carrier bases many of their decisions on the business’s gross sales. However, with a new business, the insurance carrier must rely on estimated sales projections as opposed to an actual history. Therefore, many insurance carriers will perform periodic audits during the first year and make adjustments to the policy.
- Stay Informed – As you open your business and begin to grow, reevaluate your coverage regularly. We understand that successful businesses change with the needs of their customers. As those changes happen, be sure you are updating your policies.
Why Is It Important?
Unforeseen hazards and emergencies happen without warning. When your business is in its infancy, even a small disruption in operations can impact your company’s success.
Your BenefitSource insurance professional understands the financial burdens associated with starting a small business. We will work with you to find the right coverage for the lowest cost possible. You can call us directly at (877) 215-5431 or email us for more information.
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