How to Get Affordable Protection for Your Small Business
Having the right property and casualty insurance is essential for any small business. It can provide financial protection in case of an accident, theft, or another unforeseen event, allowing you to continue operations without worry. But finding the right coverage at an affordable price can be tricky.
Outside of declining certain coverages, raising deductibles, and opting to “self-insure” some of your risks, how can you keep your insurance costs affordable?
What is General Property & Casualty Insurance?
Property and casualty (P&C) insurance is a type of coverage that provides financial protection for businesses. Yes, it can be expensive. But it can be vital to ensure that your small business has the resources to stay afloat during challenging times.
Property insurance covers things like your buildings, personal property, equipment, or commercial autos. This coverage provides protection from causes of loss such as fire, theft, equipment breakdown, etc., and generally addresses physical damage caused by a covered loss. It’s important to note that many causes of loss, such as flood and sometimes wind, are excluded in some policies due to location, so it’s important you talk to your insurance advisor about your options for coverage.
“Casualty” insurance is another way of saying “liability” insurance. This coverage offers protection in a situation where you can be held liable to someone else for damages and protects against legal claims that may arise from damages caused to another party due to the fault of your business. Examples are slip-and-falls on your property, auto accidents, and damaged property.
An insurance deductible is an amount of money that you have to pay out-of-pocket before your insurance company will cover the rest of a claim. Deductibles are typically set by the policyholder and can range from $0 to thousands of dollars, depending on the type and amount of coverage. The higher your deductible is, the lower your premiums will be since you’re taking on more risk in case something happens. It’s important to consider this when trying to keep insurance costs affordable for your small business; however, it’s also important not to skimp too much on coverage if you want adequate protection.
How to Choose the Right Policy for Your Needs
There are a few key factors to consider when it comes to finding the right property and casualty insurance for your small business. It’s a good idea to work with an insurance advisor who can guide you in the specific needs for your operations.
First, you’ll need to identify the type of coverage most appropriate for your specific needs.
For example, every business needs some kind of coverage for their property and a liability policy for any legal claims against them, whether for injury or damages. But if you are a sole proprietor with no employees, do you really need workers’ comp insurance? If you have no commercial autos but use your personal car in business, is it more affordable to get a commercial auto policy or add an endorsement to your personal auto policy? Of course, each situation is different and requires different coverage. We recommend talking to your insurance advisor openly and honestly about your operations.
Next, you’ll want to research different policies and compare pricing in order to find an affordable option that provides adequate protection. It’s usually a good idea to select the agent you’d like to use to approach the insurance marketplace and “shop” all the carriers for you. Getting too many agents involved in trying to give you a proposal can sometimes muddy the waters, resulting in higher premiums.
Finally, once you have chosen a policy, ensure you understand all the conditions and exclusions so that you know exactly what is covered in case something goes wrong. Many small businesses are able to bundle their coverage into a Business Owners Policy (BOP) for some significant savings. But be sure to go over your coverage AND the policy exclusions with your advisor.
With these steps in mind, it’s possible to get reliable property and casualty insurance without breaking the bank. Contact First Beaches Insurance for more answers to your questions or to get a quote for your small business insurance.