For example, you may think you don’t need car insurance if your business does not have a company car. However, if your business makes use of your personal car and you get into an accident during a business-related drive, you may not be covered by your personal car insurance. Thus, you would need business car insurance.
If your business needs liability insurance — which it most likely will — you should also think about how much money your business would need if your business gets hit by unexpected lawsuits.
What Does the Insurance Plan Cover?
Even though it may be dreadful, make sure that you read the small print of each business insurance policy and understand each plan thoroughly before buying it. Don’t be afraid to talk to your insurance representative and ask them to explain the insurance policies to you. As well, take your time deciding which policies you would want, and make sure you’re also looking at other business insurance companies to ensure that once you choose a plan, it is the best plan possible.
You could also get input or recommendations from colleagues or peers if they hold business insurances or something similar.
How Much Does the Deductible Cost?
The deductible is what the insurance companies don’t pay when you report a claim. As such, it may seem like a low deductible is the best option, but this may not always be true. A lower deductible in an insurance plan usually means that you have to pay more in premiums, which is what you pay for the insurance plan itself when you purchase it.
When looking for a business insurance policy, try and find one that has a good balance of the premium and the deductible.
How Does One Pay?
While looking at premiums and deductibles, be sure to ask the insurance agent about payment options for whatever insurance you are thinking about purchasing. Most business insurance companies prefer upfront payments for premiums, but often options like monthly payments or a payment every six months are available. Having payment options could go a long way in helping your business in the long-term in terms of finance.
What Are the Limits?
Before buying an insurance plan, make sure you ask questions about the limits of the coverage. This can vary depending on what type of business insurance you are purchasing. For example, you may want to ask about which doctors you and/or your employees can see if you are thinking about purchasing health insurance. You may want to ask if damaged vehicle parts will be replaced with original parts if you are purchasing auto insurance. A general question you can ask is if the company has a limit when it comes to the number of claims a business can make in a year.
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