When you are running a business you have to protect your investment and to do that requires specialized insurance products tailored for business. There are many different types of corporate insurance available and, as a business owner, you need to review all of the different options before you can make a decision on which one is best suited for your needs.
Types of Business Insurance
The first thing you have to look at is how your business is structured, is it incorporated or run as a sole proprietorship? If the business is a sole proprietorship then the coverage would be different than what you would purchase for a corporation. When you have established your business structure you will need to look at investing in insurance for your employees, this coverage ranges from medical, dental, life or a combination of these policies. The majority of employees want their employer to offer them insurance benefits so this is something you will need to address if you want to retain high caliber employees.
Aside from offering coverage to your employees, you will need to look at potential risks to your business. This can include work stoppage coverage, if your business were to stop due to external factors like a major weather event this insurance would offset any losses you incur but you need to make sure the policy is written to cover events like weather or power interruptions.
Another type of coverage you will need to look into getting is key man insurance, this protects your company in the event you or some other important member of your team becomes incapacitated. While a start-up company may not require this coverage it will become necessary as your business grows so you have to keep this type of coverage on your radar. Aside from the need for key man insurance, you will need coverage on all the equipment that is essential for the work you are doing. Machinery can break down at any time and if you are faced with prolonged repair times it could have a negative impact on your bottom line so you need to mitigate that risk.
Finding the Right Insurer for Your Business
While we have touched on some of the different types of coverage your business will require we should talk about what qualities you have to look for in a prospective business insurance provider.
How long has the insurer been in business? Focus on those firms that have been in operation for a considerable number of years, the longer they have been around the more established they will be. An established insurer will usually have a streamlined claims process so you can easily access benefits when/if you need them.
Is the insurer well-funded? You have to investigate the financial health of the business insurance provider to make sure they are capable of paying out claims whenever they are filed. To substantiate the financial health of the insurance provider you should look at their credit rating and if the rating is low do not purchase your coverage from them.
By following the outline we have presented you can protect the business you have worked hard to establish so start reviewing your insurance options now that you have the time.