Small Business Insurance: getting the right business insurance policy
The purpose of small business insurance coverage is so that a business can transfer a risk that they can afford, for example an insurance payment once a month, for a risk they cannot afford, which would be a lawsuit claim against their company.
A small business normally brings in an attorny and accountant when just starting off to set things up correctly. They also need a small business insurance agent to help in that aspect also and just as important. A lot of times it makes it easier if they can combined all their insurances with one company. Many insurance companies give very good discounts when you combine your plans and have everything with the one insurance company.
Small business Insurance Coverage is not only a neccesity as we have said, but it will also assist in others ways also. Just having the insurance can open up doors and relationships with certain other small business that you might not have had if you didn’t have complete insurance coverage.
Many businesses feel comfortable starting a business relationship with other businesses who are fully insured and can prove it, this provides them with a secure feeling about your business, something that money cannot buy.
For example a business real estate firm will sometimes only lease to other small businesses with complete coverage as to protect their assest which is the land and building. Small business Insurance coverage is not always cheap but it is an investment that you and your business should never do without.
Watch the video related to small business insurance
www.insurantz.com Are you investigating business insurance for your small business? This video from http gives you a helpful and straightforward run down of all important points to consider when searching for small business insurance policies. It includes concise explanations of mandatory policies such as employers liability insurance and central options to consider such as public liability insurance and business contents insurance. Insurantz.com are specialists in tailored commercial and …
Help answer the question about small business insurance
Whats the best avenue in obtaining Small business Liability Insurance?My husband runs a small business, but has had trouble obtaining small business insurance. He has contacted many local companies, and noone seems to return phone calls these days. We live in the Wilmington NC area. Does anyone have any advice on this? Is it best to go with a local company or can you find it elsewhere? Any suggestions on reputable companies? We have hit a road block and any sincere, knowledgeable advice will be greatly appreciated!
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I am 36 years old and have been doing small business insurance for over 12 years. Come by my blog and ask me questions about your small business.
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Posted by American Car Insurance on September 21st, 2009 filed in business insurance | 18 Comments »
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18 Responses to “Small Business Insurance: getting the right business insurance policy”
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September 21st, 2009 at 4:36 am
elementary dear watson……
September 21st, 2009 at 5:34 am
common sense
September 21st, 2009 at 3:49 am
Sure, any local agent can do that. The PROBLEM is, the PRICING goes up through the roof, if you insist on cafeteria style coverages.
So. Do you want INEXPENSIVE coverage, that includes things that you don't need (btw, liability doesn't limit itself to people at your house, it typically includes product liability for the things you sell)? Or would you rather pay 2 – 4X as much, for a custom policy with not as much coverage on it?
Usually when people complain to me about extra coverages, what they're REALLY saying is, I want cheaper insurance.
When you go to a restaurant, if you don't eat the bread or use the butter pats or the sugar & sweet & low, or salt & pepper, it doesn't mean you're paying less for your meal. The package meal deal is still usually the cheapest. Same thing for packaged insurance products.
September 21st, 2009 at 5:00 am
You indeed need that coverage. If you were to experience a flood, or fire, or any other disaster that wiped out your inventory, your homeowners insurance will not cover it. Yes it may seem redundant, but you need it to cover your household items and your business equipment and inventory. Although everything is located in your home, they are separate, and should be insured separately.
Actually, that is a pretty good price for a policy.
September 21st, 2009 at 2:14 pm
not rocket science but useful
September 21st, 2009 at 12:25 pm
September 22nd, 2009 at 1:24 am
very handy!
September 22nd, 2009 at 12:31 am
Business liability is specifically excluded on a homeowners policy. So, if you have a client come to your house & they get hurt & sue you, you will have to pay any court award, your homeowners policy will deny coverage. Also, most homeowners policies give about $2500 on premises business contents (your contents, not others contents). Anything that is used in the course of your business, even once in a while will fall under this category.
Is this business in the house or a detached structure? If it is in a detached structure, your homeowners policy will specifically exclude the structure unless you list it as a business structure and pay an additional premium.
So, get the business policy (most small business policies have a $500 or $750 minimum premium so you are getting a REALLY good price. See what it is to increase your liability to $500,000 or $1,000,000 & to increase your business contents because I'm sure you do not use JUST the quilting machine in the course of your business (add your desk, chair, phone, computer if you use it in business, regular sewing machine, material, thread, bobbins, scissors, etc)
September 22nd, 2009 at 5:32 am
Don't send them any money.
Tell them to deduct it from the $20K they are willing to lend you.
September 22nd, 2009 at 9:33 pm
Top Tips!!! thanks much
September 23rd, 2009 at 9:38 am
great to cover stuff away from your premises…very handy tips
September 23rd, 2009 at 10:44 am
important information – thanks for posting
September 23rd, 2009 at 12:35 pm
fires can really loose you money if you’re not insured!!! brilliant advise
September 23rd, 2009 at 6:56 am
Try the Business Opportunity Search Engine for liability insurance.
Your results from the community powered Business Opportunity Search Engine are much more focused than a general search engine and they will continue to learn and adapt, anonymously and automatically, based on the search behavior of every search you request. http://www.businessopportunitysearchengine.com
September 23rd, 2009 at 2:54 pm
a checkbook.
September 23rd, 2009 at 10:46 pm
good stuff – breaks it down nicely
September 23rd, 2009 at 6:01 pm
I have a friend who owns a business and had similar insurance issues and found the only way to be completely covered was the insurance offered through the state itself. At first was not very happy at his limited options but when all was said and done they ended up saving money and were apparently had the same level of coverage as they did before.
September 24th, 2009 at 1:52 am
OK, you're going to need liability coverage for your landlord, you'll need property coverage, you might want workers comp (it's not mandatory in TX, but you STILL have to pay any medical bills and lost wages for an injured employee). Depending on your location, you might need seperate policies for wind (hurricane) and flood damage to your stuff, especially if you're borrowing the money for it.
You are not going to be able to buy this with monthly payments, for a startup business – you'll have to pay in full for the first year. You need to budget $5,000 for the insurance costs on this – including the wind & flood. If you own the building, it will be a lot more, depending on how big the building is. Or what the landlord requires you to carry.