Small business insurance seems so natural for every business owner. What else can help you to be sure in your happy tomorrow? Nothing! But how to make your business insurance policy really the best?
Best Small Business Insurance – What Actually to Insure for Small Enterprises?
Three main fears of an average small businessman?
Too huge expanses for an insurance policy
Impossibility to receive insurance payments in case of need.
Inability to estimate insurance risks correctly and to choose the insurance plan
These fears are too vague and far-fetched. But the real risks an average small business owner really meets in his professional life are the following.
Business process interruption because of floods and fires.
The injury of some workers that makes him disable for some time and prevent from working.
Different kinds of lawsuits
The impossibility to return the credit to your bank in time.
Every small businessman dreams to get cheap small business insurance and pay small premiums every month. At the same time he hopes to get really solid coverage, when some kinds of natural disaster occur. Of course, this idea to get the best kind of service for the smallest rate is a kind of a fairy-tail. Everyone understands, that small business liability insurance cost depends on such important factors as the area of your business, the annual turnout of your business and the amount of coverage you will get in case of a disaster and interruption of you business process. If you get cheap product – you get small coverage. It goes without saying that safety is not the thing you should save money on. Same time it is necessary to estimate your risks correctly not to pay for the risks you can never meet in your business life. First of all you need to know, if you area of small business is really dangerous.
Three Most Dangerous Kinds of Small Business
I know that every head of huge corporation smiles ironically, when he hears about “risks” in small business. Can a tiny shop with food products around the corner be really dangerous? Can the life of the owner of this shop be full of business risks and hard decisions? In fact, yes, it can. Different areas of small business can be really dangerous. Here are three the most risky kinds of small business.
1 Agro business – If you are the owner of a small farm, you life is full of anxiety. A small agro business depends on the weather conditions that are unpredictable and can make future crop extremely low. Besides, very often they get credits at banks and had to pay huge percent rate.
2 Small goods trade – That very small shop, which was mentioned above, is not so easy to own. The building of this shop is usually single-story, that’s why it is damaged deeply in case of flood. Very often there are fires in warehouses of these shops (these fires not always occur accidentally; very often they are the tricks of your competitors). And finally these small shops are the victims of theft and robbery.
3 The last dangerous kind of small business is mass media business. If you think that famous TV hosts lead a very dangerous life, you are not right. In fact, the situations, when correspondents of a local private newspaper were beaten or even killed, and their equipment was spoiled, are really widespread.
These facts prove, that running a small business is not a nuisance, it is risky and hard and getting insurance policy in necessary. But very often a business owner feels lost among the variety of policies and insurance services he is offered.
You may refuse from many different insurance plans, but getting liability insurance for small business is, no doubt, successful and reasonable investment.
Liability Insurance for Small Business is the Way to Protect
General liability insurance for small business covers four kinds of business risks like professional liability, completed operations liability, medical payments liability and fire liability.
Activity of small enterprises has a number of features, which need to be considered while applying for liability insurance for small business. Damage of property of small enterprises can entail the interruption of its activity for an indefinite term , and sometimes even to impossibility of renewal of its activity. For this reason the enterprises of small business, as a rule, insure risks, which larger companies prefer to cover from their own account.
The only thing that keeps business owners from purchasing the policy is small business liability insurance cost. The prices are quite high and the annual income of a small enterprise is not always high. I won’t tell you that getting a policy is inexpensive and you can pay for it easily. In fact, sometimes it is quite pricey. In average the annual premium for general business liability insurance is about $3000. Of course, it is always possible to get cheap small business insurance, but it doesn’t meet needs of small business and provides you with extremely small level of coverage. So, remember that penny wise and pound foolish and make three necessary steps to buy small business insurance quote.
Three Steps for Getting Small Business Insurance Quote
Finally, you are ready to get small business insurance quote. You can make it online, on phone or personally, if you appoint a meeting with an insurance agent. Before getting a quote, you will be asked several simple questions like
What is your annual turnout?
How many employers do you have?
Have you ever been involved in a lawsuit?
How many claims have you made during the last two years?
After answering these questions, your agent will see, if you meet all the requirements of the insurance company. If it is so, you need just to bring the necessary package of documents to get the policy.
To sum up, getting insurance policy for small business is absolutely necessary. The most widespread decision for an average representative of a small business is liability insurance policy.
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