Business insurance is a necessity for all business owners. Though the expense can’t be tied directly to revenue, it has to be budgeted as one of the costs of doing business. To help make these costs more manageable, follow these five simple steps:
Buy a Package Policy
It may be less expensive if you purchase a package policy, such as a Business Owners Policy (BOP), rather than individual coverage spread around to different service providers. A package policy provides standard coverage and limits of liability that are appropriate for typical small-to-medium-sized businesses.
Develop a Relationship with your Agent or Broker
Your insurance professional has a wealth of information that can help you protect your business from unexpected disasters. But you need to keep him or her informed about any major changes in your business. This includes major purchases, expansions, changes in hiring, or the nature of your operation. Also, get your agent’s advice in terms of disaster planning. Ask what you can do to reduce risks like fire or work-related accidents, as well as the best procedures to have in place in the event of a major catastrophe.
Your business is one of the most valuable assets you are protecting, so work with someone you trust and feel comfortable opening up your business to so they can have all the information they need to make the best recommendations possible.
Ask About Ways to Prevent Losses
Implement your insurer’s risk prevention recommendations. These may include making changes to operational functions such as workplace safety, disaster preparation, or human resource intervention, but these changes have been recommended to decrease costs.
Choose a Higher Deductible
Deductibles represent the amount of money you pay before your insurance policy kicks in. The higher the deductible, the less you will pay for the policy. Evaluate your cash flow situation before determining what a comfortable deductible amount would be
Let Your Broker Do the Work
Prices vary from company to company, so let your broker do the work. They will be able to compile a list of companies who specialize in your type of business. They will present you with different options so you can compare prices and get a feel for the types of services each company will provide. Working with a strong broker like NEC will ensure the company you choose is financially stable so you’ll know your protection is secure.
Give yourself time to do the research you need. Having the right coverage and a well thought out disaster plan can save you money in the long run and keep you operational during any type of claim process.
To work with an insurance agency that has the experience you need to provide you with the best coverage at the best rate, contact Joe Bosse, President, at 636.271.2481, or jbosse@NECins.com.
NEC is one of the largest independent insurance brokers in Missouri offering business and personal insurance, risk prevention, and financial services. Contact us today for more information at 636.271.2481 or visit NECins.com.