Many people are confused regarding the difference between the insurance they get for their car and home versus business insurance used to protect yourself from liability. Business insurance, or commercial insurance as it is known in some areas, offers far more comprehensive protection than other policies designed to protect individuals who do not own a business.
However, the cost of business insurance can often dissuade small and home-based businesses from purchasing it. The following guide outlines why cheap business insurance is more than adequate for your needs.
The Demand For Business Insurance
It is relatively easy to see why business insurance is necessary when you consider all the situations that can potentially threaten your company. For example, if a client or employee was injured while on your premises, you may be held liable.
Such an incident may even lead to a lawsuit, where the very livelihood of your business is put in peril. Another common threat is damage caused by a natural disaster. Many businesses rely on equipment that is extremely expensive, and impossible to recover with the company’s finances alone.
Why Cheap Business Insurance is the Best Policy for You
It’s likely you wouldn’t be reading this article if you owned a large financial consortium. Most people in the market for cheap business insurance are running small, home-based businesses that do not require much of the protections offered by more expensive packages. The cost of equipment may be nothing more than your computer, printer, and fax machine.
The number of employees in your company may be the same as the number of employers. In other words, it may just be you. On the other hand, there are clients you deal with, or ship packages to, and the risk of liability is still there. Cheap business insurance typically will tailor to these types of businesses. They will cover clients and the cost of equipment, with deductibles that make sense for the price of replacement.
Not having adequate coverage for your insurance can be disastrous. A single incident can result in litigation that ruins your company. However, having adequate insurance is not the same as having comprehensive insurance. Most cheap insurance offerings are not cheap because they are inadequate.
On the contrary, many simply prune down costs by removing much of the filler that occupies more traditional offerings. A cheap business insurance package attracts customers by being flexible to the needs of their individual business. A lawyer looking for errors and omissions insurance, for instance, will have far different needs than a coffee shop owner looking to cover his equipment.
Some cheap business insurance wasn’t cheap to begin with. It was made that way through careful negotiating on your part. The best way to drive down the price of your insurance is to demonstrate why your business presents less of a risk than similar companies. Safety training courses for employees, regular equipment maintenance, and other such procedures can help convince an insurance agent to lower your premium.
It’s also possible there is some overlap with existing policies you own. Your car or home-owner’s insurance may cover certain aspects of your business, making them superfluous aspects of your business insurance. Removing them from either insurance policy can help deduct your rate.
Remember, before choosing a cheap business insurance plan, always read the fine print. Some plans are cheap simply because the terms and conditions are stocked with exclusions that limit your coverage in ways that make the policy infeasible. Be sure to talk with an agent and confirm the things you wish to cover are indeed protected.