Tips on How to Buy the Right Small Business Insurance

Risk ConceptIf you own a small business, you know how important it really is to preserve your resources. Small business owners are often forced to take on numerous types of responsibilities: they have to maintain a flawless website, keep in touch with clients and partners and implement personalized sets of strategies created to boost profitability and reduce costs at the same time. On top of this, company owners also have to find the best way to protect their business and their assets against a plentitude of risks, including fires, floods, more or less justified claims filed by third-parties, burglary attempts, acts of vandalism, damage caused by extreme weather conditions and so on.

All these important disruptive factors should be taken into consideration and addressed in a timely manner. Unfortunately, not all owners have the skills, the time and the patience required to make an informed decision when it comes to investing in this particular type of coverage. Worried that you may not be able to avoid the pitfalls associated with the insurance buying process? In this case, get all the basic info that you may need to make a smart investment by checking out the simple tips listed below.

Bundle Your Policies

Believe it or not, most business owners choose to buy different policies that protect their business from more than one insurer. This is a counterproductive practice that you should avoid. Why buy liability coverage from a certain carrier and a policy that covers your office furnishings from a different provider when you can purchase all the policies that you may require from the same insurance company to save big? People who choose to bundle their policies get considerable discounts; plus their insurance renewals are always less stressful and time-consuming.

Get Accurate Quotes Online

When you have to manage a small business you don’t really have time to meet all the insurance agents who operate in your zip code. This is perfectly understandable. Fortunately, you can spot the hottest deals and select the best carriers by doing some research online. Surf the Internet, get accurate free quotes online and analyze all the policies that are in your price range and could interest you. Use the numbers provided by Insurance Quote Depot to compare small business insurance rates by zip code and pick a good policy offering you the highest level of protection that you can actually afford.

Opt for the Optimal Deductible

There’s one important thing that you should know about the insurance industry: high deductibles are paired with lower rates. A deductible represents the amount of money that you would have to put on the table if your worst dreams were to become reality. It is not recommended to opt for a policy with a small deductible, because you would have to spend a lot of money on premiums on a monthly basis. At the same time, don’t set a deductible that clearly exceeds your financial possibilities. For example, if you want to go for a 5,000 dollars deductible, ask yourself the following question: would you really be able to come up with this amount of money overnight, in case your business were to be wiped off the face of the earth by a natural calamity? If you don’t think that your company is exposed to considerable risks, it would make sense to boost the value of your deductible just to be able to save some money that would otherwise be spent on premiums every month.

Review Your Coverage on an Annual Basis

It is very important to review your small business insurance plan every single year. This way, you could add or remove policies and opt for the right level of coverage in your price range. Every year, business owners can discover new categories of risk factors threatening their safety, profitability and good name. For example, recent statistics show that 20% of the overall number of cyber attacks recorded on an annual basis target small-scale companies with less than 250 staff members.

Moreover, it seems that 60% of all the businesses that have been impacted by a cyber attack are forced to close their gates within 6 months from the disruptive event. At this point, cyber crime is a very trending topic, but a few years ago it was more of a mystery and its effects were greatly underestimated. This is precisely why you should schedule a meeting with your insurer and discuss your options in terms of coverage every year. The needs of your ever-growing small business change rapidly, and you have to learn how to evaluate and address them quickly to maximize your gains.

Analyze and Improve Your Current Risk Management Options

Reinforcing your existing risk management strategies is always a good idea, especially if you want to prevent all risk factors that could affect your profitability, popularity or competitiveness in your field of activity. Take the right measures to reduce your own risks and also to minimize or eliminate the hazards that may threaten your employees or your partners. This is an excellent first step in the right direction, towards finding a decently priced small business insurance policy tailored to your real necessities. Implementing sound risk management tactics can and will reduce your 100% preventable losses and help you run a healthier small business. This is not as difficult as you may be inclined to think. To simplify your mission and make a great decision without hiring a consultant, you can start by consulting several first-class resources provided by the American Red Cross, the U.S Small Business Administration or the Insurance Institute for Business and Home Safety. Stay informed to keep dangers at bay and manage your business the easy way.

When in doubt, don’t forget that you can actually compare small business insurance rates by zip code. This is a great advantage for all busy owners who can never find time to leave their offices to conduct a proper insurance hunt. Rely on free, accurate quotes found with a few clicks to make a smart purchase and walk away with the insurance policy that works best for your company.

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