One of the most important parts of your business plan is your insurance. So many businesses neglect this essential aspect and are left with only ashes after disaster strikes. There are, however some things you need to consider before signing with any insurance company.
The three main items to consider are: price, service and the financial stability of the company. These three key features can prove to be the main factors that influence your monthly premium and determine whether your claim is successful in the event of a disaster.
Comparing quotes from multiple companies can save you a small fortune over the years. The minor act of logging onto a website that compares quotes can save you time, effort and money. Be sure to read the fine print of any insurance contract. The excesses can be set to a really high amount in order to lower the monthly premium. Having a set excess, as opposed to a percentile of the claim, will often increase the monthly premium. If you choose to spend less per month and have a higher excess, ensure that your savings will be able to cover the excess in the event of a claim.
The service options that insurance companies offer can vary greatly. Make sure you choose an insurance company that has been in the industry for at least a decade. Although this may increase the monthly premium, you can rest assured that the company has a reliable track record and can be trusted. Considering that you are placing the entire risk profile of your business in the hands of this company, the cost is usually worth it.
In the current global economic meltdown we are experiencing, insurance companies are “falling over” everywhere in the world. This is cause for some alarm. If you insured your business with a company that files for bankruptcy and then need to claim, you could find yourself and your business in a spot of trouble. Research will assist you in making the correct choice. Make sure you choose a company that has a good history and financial reputation. The few minutes spent searching the internet for information on the company you are interested in can save you much pain and suffering in the future.
The best, although not necessarily the cheapest option, is to employ a certified financial advisor or independent broker to assist you in choosing the correct and most appropriate policy. This is particularly true when it comes to businesses with unique needs and risks. A general business insurance policy, similar to a home contents policy, is safe enough to source on your own via direct insurers, but if your risks are more unique like those of a doctor or engineer, then professional help is recommended.
Above all, use a touch of common sense and ignore marketing gimmicks. Make sure that you feel comfortable with your decision and that you are able to pay your premiums. Make your decision with as much information at your disposal as you can find and review your decision on a yearly basis.