What to Consider When Getting Insurance for a Small Business

By Brown Ezilon.com Articles Published 09/10/2011 | Small Business Issues

Insurance is important even when you only have a small business as you need to protect your enterprise from any unexpected incident that may occur, which may incur in investment losses. You cannot face up to certain financial penalties or losses with your companys finances alone, this is why an insurance is fundamental.

Before purchasing a small business insurance cover package your first step should be to identify a suitable agent or broker, on which you can rely on to deliver. There are various places where you can start your search and these include sources like the yellow pages and references from some of the business acquaintances you have.

In using the yellow pages you will want to look for an agent or broker whose work entails commercial insurance as a specialty. Additionally, you may want to check whether or not your insurance company option is a member of one of the professional associations for agents or brokers.  Once you have considered the professional options proposed by the insurance, find out which one sounds more beneficial. Try and find out whether there are any gaps, miscalculations and/or omissions on your part with regards to the type of small business insurance you had identified as suitable for your enterprise.

You should consider the various types of exposures that you will want to protect your small business against, as there are basically six such areas and these are property, liability, time element, workers' compensation, crime and automobile. It may be a good idea to get professional advice to help you choose which areas your company needs to be covered for as not all may relate to your business.

 You will definitely need workers' insurance if you have employees and automobile insurance will be a requirement if there are vehicles. Some of the other areas of risk will really depend on business decisions on your part but it is of essence to realize that if you need to enter into various contractual agreements you may need to have or to comply with certain small business insurance requirements of which you should be informed about.

Prior to obtaining the insurance cover you require it may be worthwhile to engage the inspection services of a loss control expert so as to identify any hitherto unexposed hazardous conditions and/or situations. The expert's report and recommendations may prove beneficial in as far as helping to reduce the cost of premiums and increasing the appeal of your business to insurers is concerned.