Do you need business insurance? Besides ensuring you meet statutory and professional organisation obligations, business insurance shows that you mind your client's welfare. It also protects your business from liability after accidents. Below are some essential tips for businesses that might want to get business insurance.
Reduce Business Risks
The secret to managing your business insurance is ensuring your business is risk-free. Once you take a cover, the insurance company will visit your premises to evaluate the risks. You will pay more if the insurance company finds your premises risky. Therefore, it would be wise to eliminate business risks by installing a fire alarm, removing slippery floors, improving the structural integrity of your business premises, and ensuring employees have personal protective clothing.
Determine Statutory Covers
As a rule, your business must have statutory insurance covers. If not, you risk prosecution and severe fines. In Australia, workers' compensation insurance is a compulsory cover for all companies that have employees. Besides, all vehicles must have insurance coverage. In some cases, professional associations will compel you to take a particular cover. For example, a contractor association could ask its members to have a specific amount of general liability insurance.
If Possible, Combine Several Covers
As your business grows, you will need to increase the number of insurance covers that you have. For instance, you might need product liability insurance if you decide to manufacture your products. On the other hand, you will need fire insurance if you move into your premises. Ask your insurance company or broker to combine these covers. It is a sure way to reduce the annual premiums and ensure you have an easy time managing your insurance.
Choosing An Insurance Company
You must be cautious when choosing an insurance company to offer business insurance. Some considerations to make include the following.
Work with a company specialising in business insurance. It is a guarantee that the insurer understands your business needs. For instance, they could be willing to reduce the premiums if you downscale your operations.
The company should have reasonable terms. Avoid insurers with stiff penalties or those that will nullify your cover without due cause.
The company should have a quick and efficient claims process. Too much bureaucracy when filing for claims could affect your business operations.
The company must be financially stable. Experienced managers and a profit-making history are guarantees that the company can meet your claims.
You should now have an easy time managing your business insurance covers. Remember to update your cover when you adjust your business operations.Share