Actually, there are two main category of insurance for small business you should know before you opt to cover your business with the most secure one. There are property and liability insurance for small business that has different function. Property insurance secures your assets such as your building, cars, or other goods that may support your business. On the other hand, liability insurance protects you in the event if you harm other person or other business.
Liability Insurance: Typical Cost for Small Business
Small business needs liability insurance because it will reduce the risk if only you did not run your business quite well. If you run a business that potentially contain risk exposure, the premium of liability insurance will be much more expensive.
The typical cost of liability insurance for small business is determined by the insurance company. The company estimates the cost by looking at your business size, the number of employee and also type of business you run.
However, if you plan to make the premium rate even lower, actually you need to do several ways. First, you should regularly report your claims and risk exposure low.
By doing this, your insurance company will likely cost you lower knowing that they should not doing extra work to protect your small business. Second, you can lower the cost by choosing less coverage or you can also choose lower limits so that the insurance company must pay out less than it actual cost.
Liability Insurance for Small Business: How to Get It?
Getting liability insurance for small business needs extra effort especially when you have no idea about the coverage and also the premium rate you should pay. Therefore, you need to know how to get the right liability insurance for your business.
The first thing you should do is determine the needs of business insurance coverage for your company. You need to estimate the typical pay out of the cases that usually brought against your company.
By estimating typical cases cost, you can determine whether you need more liability insurance to protect your assets or not. Next, you need to decide one of three types of liability insurance starting from general, professional, or product.
General liability covers injury claims and property damage. Professional liability works to overcome malpractice issue or error while product insurance takes care of product that might harm customers.
You can cleverly find a professional agent or trade association to lower the cost. If you try to get it alone, you may find yourself purchasing policy that you don’t need and it will end up spending more dollars from your account.
But you should make sure that the members of that agent don’t have bad record in any liability issues. Make sure to ask your agent to get special discount by obtaining certain way such as good-student discount if only you had a kid in your home.
Before you shop around to protect your small business, make sure to estimate the amount of coverage you needed. You can also compare the coverage from one insurance company to another so that you can decide which one is good for you.
You can also go to insurance agents and ask them whether there is a company that has insurance package or not. By doing this, you will surely save more budget for buying liability insurance for small business.