Running a small business can provide a number of advantages to an entrepreneur, including the ability to set one’s hours and do work that one truly finds meaningful. However, there are also several risks to small business management and ownership, including risks to one’s own finances. This is why it is essential to carry small business insurance from the moment you decide to make your start-up business a reality.
What needs to be insured, and for how much?
What you decide to insure in your small business will necessarily depend on what goods or services are provided by your business. Some entrepreneurs are very risk averse and decide to insure for every risk they can think of, while others may only insure themselves against the more likely risks. It is important to find balance here, not being over-insured but still being adequately covered for the types of risks a business of your type may face. Sit down and figure out what risks one will be most likely to face while determining how much in finances one has available. Consider your liabilities should you have inadequate finances to cover the cost of an event occurring.
The policies you take out should reflect your business
In many cases, when you have a start-up, you can work with your insurance broker to make your small business policy fit the specific needs of your business. For example, if you have a standard policy that does not address a unique risk that is relevant to your business, you can often have an additional clause covering that risk added to your policy.If you are looking for an insurance broker you may wish to check out Need A Broker which has a directory of Australian Insurance Brokers.
It is often cheaper to bundle multiple policies together
Another factor to keep in mind when searching for small business insurance is that you will often see a discount if you can put a number of policies under the same roof. These small business “packs” can allow you to save a lot of money that can then be reinvested in other parts of your business. Be careful though that each individual policy matches your needs and don’t just go for it to reduce costs.
If you can, look for insurance providers that specialize in business insurance rather than those that primarily sell domestic insurance, as they are likely to have more options and better rates and importantly understand your needs and likely risks.
When starting a small business, you will need to keep track of all kinds of things, from securing the necessary finances to deciding how many employees you will need and which ones you should hire figuring out a strategy for attracting the clientele you will need to keep your business running.
Don’t put off the necessary issue of small business insurance until the last minute. Deal with it early on as a priority.
“To finish first, you must first finish” – Rick Mears