What is one tip for small businesses to obtain sufficient insurance coverage?
To help small business owners with having enough coverage, we asked CEOs and business leaders this question for their best pieces of advice. From exploring dental options to asking your employees about their needs, there are several ways that may help you ensure enough coverage for years to come.
Here are ten tips to ensure sufficient coverage:
- Review Business Needs
- Consider Retirement Plans
- Explore Dental Options
- Go With What the Contract Says
- Talk to More Than One Broker
- Ask Your Employees About Their Needs
- Retain an Insurance Broker
- Research What is Required by Law
- Explore Cyber Insurance Policies
- Opt for Overall Coverage
Review Business Needs
Determining whether you have sufficient coverage depends on your business needs. Every business is different. Some factors to consider are the value of your business in terms of revenue, assets, and liabilities. You should also consider how many employees you have and the type of work they do. However, when in doubt an umbrella commercial liability policy might be right for you. These policies generally increase your liability coverage to provide additional coverage for most business liability claims.
Brandon K. Berglund, Berglund Insurance
Consider Retirement Plans
I definitely would recommend that small businesses look into some type of retirement plan. Your business is your financial lifeline and while it can be easy to want immediate results, you’ll want to also look into a way to help you when you decide it’s time to retire. To obtain full coverage you’ll want to cover everything from disability insurance to preparing you and your employees for retirement. Small businesses will have a variety of options for them from Safe Harbor 401(k) to simple IRA. Knowing those options and selecting the best one for you and your business will help you make sure you have full coverage on all ends.
Chris Abrams, Abrams Insurance Solutions
Explore Dental Options
It can feel easy to make sure you have insurance for your business, but it’s equally important to make sure that you’ve got your health covered. You’ll need a variety of types of insurance while running your business. When you’re looking into business health insurance, don’t forget to explore the dental options. You and your employees will be happy to have it in case of emergencies, implants, and for regular cleaning as these are important steps for preventative care. Medical bills can be costly, so make sure that you’re carefully reading the coverage options and get the best options for whatever your budget is.
Henry Babichenko, Eurodenture
Go With What the Contract Says
In the past, the thing that inspired our marketing agency to obtain insurance coverage was when client contracts called for the coverage. For example, one client agreement required that our agency have a $2M limit on Professional Liability (E&O). When determining what is “sufficient” coverage, I recommend using client contracts as a guide to meet external vendor requirements and ensure good coverage.
Brett Farmiloe, Markitors
Talk to More Than One Broker
Insurance is confusing, and it can be easy for small business owners to take the path of least resistance when they look to protect their business. To make sure you’re comfortable with the choices you’ll have to make, try talking to more than one broker. While the first broker you come to may be great, or come highly recommended, it’ll be good to have someone to compare them to. You’ll also get more than one opinion on any sticky topics, which may help you understand what you really need.
Elliott Brown, OnPay Payroll
Ask Your Employees for Their Needs
It’s important to understand the needs of your employees when selecting insurance coverage options. One of the ways to do this without overstepping is to send an anonymous survey with questions inquiring about problems with current coverage options, their desired must-haves in an insurance plan, and other basic questions! This helps you see what your employees truly want and need in a plan and you can tailor your options to match those as much as possible!
Brandon Brown, Grin
Retain an Insurance Broker
As a small business owner myself, I highly recommend not spending time shopping around for the best insurance rates. Let an insurance broker do it for your company. An insurance broker can shop for the best insurance rates for the specific needs of your small business. Retaining an insurance broker will save your small business time and money.
Tate Meagher, Meagher Law Office, PLLC
Research What is Required by Law
Your insurance needs, in my opinion, will vary depending on a number of things, including your industry, specialty, and business assets. Purchasing business insurance may not only be a wise investment, but it may also be a necessity for your small business. You may be obliged to carry particular coverage depending on your industry, state, clients, and lenders. If you rent a commercial space, for example, your landlord may require you to get a general liability policy to protect yourself from third-party lawsuits alleging bodily harm or property damage. For business property owners, mortgage lenders frequently have similar requirements.
Eric Carrell, SurfShark
Explore Cyber Insurance Policies
Ensure to investigate cyber insurance policies that may be a wise expense to cover up gaps in coverage when obtaining sufficient insurance coverage. Most policies cover damages and losses sustained due to certain types of cyberattacks, as well as personal liability. Ensure you are protected by a policy that includes the right coverage for your needs while keeping your liabilities and operational costs low. Check out our list of best cyber insurance companies to learn about different policies that may be best suited for you. Ensure that your cybersecurity plan includes penetration testing and continuous monitoring and a plan for how to respond.
Katherine Brown, Spyic
Opt for Overall Coverage
Get a Business Owner’s Policy to ensure that your business receives sufficient insurance coverage. A Business Owner’s Policy (BOP) is a type of insurance package that covers all the various types of policies that you will require for your business. This will be easier and usually cheaper to purchase all the insurance you require in this bundled form.
Omid Semino, Diamond Mansion