Every business should be insured- specifically owner-operators in the trucking industry.
That sounds obvious enough at face value, but for lots of owner-operators and newly launched start-ups, business insurance coverage is often overlooked. Even if you are aware of the need for a strong policy to minimize liability risk, you may find that there is a lot of confusion in the marketplace and tricks to get you to overspend.
A good business insurance company will give you custom options to cover any conceivable risk your business might face. From new threat like cyberattacks online to the traditional workers’ compensation claim, you should be able to pick and choose layers of coverage to properly insure your company.
Words Of Wisdom For Small Business Owners Insurance Strategies
#1 – Get A Business Owner’s Policy to start out with. These plans offer a broad, affordable coverage plan for your new business to build a solid foundation on. This type of policy combines both general liablity and property damage protection. Some of the newer BBO policies typically cover major events that disrupt your business from opening, property damage or lawsuits. You can consider BOP insurance as a combination of general liability and property insurance that extends your coverage to cover any damaged materials for their full replacement value.
#2 – Don’t count on the business owner’s policy to cover all of your needs. It is an easy entry into business insurance companies offerings and depending on the number of employees and the type of business you have, you may want to add additional specific types of insurance.
#3 – Consider adding disability, long-term care and life insurance policies to ensure that your company could survive if something catastrophic happens to you or other business owners.
Avoid The Companies That Off Flat Rated Business Insurance Policies
As we mentioned above, when you’re trying to get a business off the ground, keeping your expense down is often the priority. We can certainly understand your desire to keep the outgoing payments as lean as possible, but for business insurance coverage, cost shouldn’t be the deciding factor.
Get quotes from several small business insurance companies and look into bundling your personal and commercial policies together to maximize your savings.
The Small Biz Insurance Audit
As a rule of thumb, your policy cost is based on a business’s annual gross sales. If you are a startup without any sales to go on, your policy premium will be based on your estimated annual sales.
Just like your regular federal taxes, as a business owner, you will be audited during your first year of coverage. Either at end of the policy period or sometime during the final 2 months of the calendar year. The insurance companies do this so that they can get a true view of your sales and then adjust your premium accordingly.
An Interesting Twist For Home Based Business Owners To Be Aware Of
In a surprising twist, and against the conventional notion, if you run your business from home our regular homeowners will not cover losses to your companies items without a rider. Keep in mind, that homeowners’ policies can only go so far with covering your home-based business. It would be pertinent to speak with your insurance agent and discuss your options for general and professional liability.
B2B Relationships Will Also Require Your Business To Be Insured
Having your business is not just important to you as the owner, but it will be also be required in your B2B relationships. Commercial property owners that lease office will require a certificate of insurance to show them that your business will not disappear overnight in the event a loss occurs.