By Henry Brown
Insurance – a word we are all familiar with and something most of us have, be it for our homes and personal lives or for business purposes. But how many of us actually understand the nitty-gritties and underlying clauses of the insurance policies we sign up for? The world of insurance can be big and daunting, but it doesn’t need to be. Below are a few pointers and helpful tips for the uninitiated small business owners and solopreneurs.
Do I really need insurance for my small business?
Yes, no matter how small your business might be, you will be much better protected if you have certain insurance policies in place. Of course, the kinds of insurance you need will depend on the nature of your business, but rest assured you will need the safety net of insurance.
Every business has its risks, no matter how confident you are of your abilities to succeed or of your investment and capital. Life is unpredictable, and you never know when your business (or a part of it) can come crashing down.
Moreover, some types of insurance are mandatory by law so make sure you have all the necessary insurance policies.
Where can I find the best insurance deals?
When it comes to business insurance, it is important to remember that not all insurance providers are created equal. You can buy policies either direct or through an insurance broker, in person or online.
It is imperative to look for an insurance broker or insurance policies that are tailored to your specific business and needs, and that can give you enough flexibility as your business grows and transitions. Take some time and do your research and ask around for recommendations before finalizing your decision.
What if I’m running my business from my home?
You might assume that since you do not have a separate office and run your business from home, that your existing home contents insurance policy will suffice. Alert: it won’t! Even though you might be working from home, there are other things to take into account such as your business equipment and stocks, so you will have to change your policy from a domestic one to a business contents policy.
Likewise, even if you have an online business selling items on the internet, you will still need product liability insurance to cover you from any damage or injury the products you sell might cause, irrespective of whether you are the manufacturer of the products or not. This is because the product bears the name of your business, so you are still liable for a compensation claim.
Can I reduce my insurance costs and still be adequately protected?
Solopreneurs and small business owners often don’t have too much reserve cash to invest in various insurance policies; yet, it is essential to do so. A middle ground could be to bundle all your insurance coverages under a single policy with a single insurance company, rather than having multiple policies with different companies.
This can save you money and time as you will most likely be offered a lower premium on each policy, and it will also make renewing your insurance more time efficient.
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Henry Brown is an online marketing executive. When he isn’t talking shop, he’s roaming the streets of London, uncovering the extra-ordinary in the ordinary.
