Insurance can be complicated, business insurance doubly so. In order to to give some of you budding entrepreneurs a better understanding of what you can expect we have a brief guide of some do’s and dont’s when selecting small business insurance.
Some do’s for selecting the right types of small business insurance for your company are considering the usage of an insurance agent who can handle all of your business’ insurance requirements; having this insurance agent be involved in your business start-up process; include excess liability or “umbrella” coverage; use a broad from of business property insurance; consider a health insurance policy to attract and keep good employees; consider carrying employment practices liability coverage if you do have employees; always maintain a clean and safe workplace environment; include any tenant improvements in your property insurance policy; increase all small business insurance coverage as appropriate to the level at which your company is growing; and consider maintaining a buy-sell agreement with all partners that is funded by life insurance, should death of a partner occur.
Some don’ts? Do not consider self-insuring any such part of your worker’s compensation risk; fail to acknowledge regular employees as employees and not contract workers; overlook ongoing employee training on maintaining a safe workplace environment; think that you cannot afford insurance (your small business can’t afford NOT to have it!); deal with contractors who cannot provide insurance certificates; allow your insurance policies to lapse for non-payment of premiums; deal with small business insurance providers who have just substandard ratings; withhold information from your small business insurance provider (always give the provider the complete scenario of your small business risks); go uninsured in any category of insurable and significant risk; and overlook earthquake or flood insurance if located in an area of high risk.