As a business owner, whether large-scale, small or medium-sized, your business is prone to certain risks. These risks vary based on your industry type and certain other factors. According to business day, there are four major risks a business can experience; operational risk, strategy risk, compliance and reputational risk.
A small act, inaction, not understanding your insurance policy details, or even purchasing the wrong cover can expose your company to these risks, leading to financial loss, a decrease in brand credibility and, in some extreme instances, losing the company.
Insurance, whether for a business or an individual, stands as a redeeming saviour when unprecedented events happen to provide coverage for your company. Therefore, business insurance should be mandatory for every business owner.
Considering the technicalities and complexity of the traditional insurance structure, which some insurance companies still implement, it is advisable to work with a business insurance agent. Your business insurance agent should be knowledgeable and experienced about the best insurance policies for your industry and business. Ensure you approach your business insurance agent with questions. Finding clarity and accuracy on the kind of insurance policy you need to purchase is essential.
Below is a guide on questions to ask, although they may differ to suit your industry and sector. These questions are homogenous to every business and sector:
1. What type of business insurance does my company need?
Your industry type is a primary factor in the kind of insurance your business insurance agent will recommend. With this, you can make informed decisions within your budget and company expectation.
What business insurance policies should you be acquainted with as a business owner?
General liability insurance: It provides coverage when your customer holds you liable for an injury from using your product. Insurance coverage includes medical expenses, lawsuits and damage to customer property.
Professional liability insurance/errors and omissions insurance: Serviced-focused businesses should purchase professional liability insurance. You and your employees will be covered against customer claims of inadequacies or negligence.
Motor Insurance: Business owners with a company vehicle should own comprehensive motor insurance. Unlike third-party motor insurance that covers only damages done to the other party after an accident, comprehensive motor insurance covers medical expenses of yourself or employees and the third party.
It also covers the cost of repairing both car damage, the third party’s vehicle and yours.
Worker Compensation insurance A worker’s compensation insurance covers employees’ medical expenses when a work injury occurs.
Business property insurance: It Protects your business property, buildings, tools and equipment in unforeseen situations such as vandalism, fire, and storm.
2. What are the insurance policy’s limit and coverage limits?
Once advised on different insurance policies that complement your business needs, the next question to ask your business insurance agent should be about the insurance policy and coverage limits.
Every business insurance policy has limits to its coverage and claim.
What is the maximum payment the policy covers in a single year? What is the maximum amount you receive for any single claim? The type of industry, specific service offered, location and many other factors determine this decision.
What does the policy cover and doesn’t? Does it cover flooding and other natural disasters? Understanding the gaps in any insurance policy will help you request a more robust policy or option.
3. How and when can you submit a business insurance claim?
Your primary intent for getting business insurance is coverage for unforeseen events. Inquire about the steps to submitting a claim. For traditional insurance companies, the process of requesting a claim is disconcerting. It would help if you had tips and guidelines to navigate such moments.
4. How can you save on your business insurance?
Saving on your business insurance can come in the form of discounts. Insurance companies offer different discounts to help you save on your insurance needs. Ask your business insurance agent about your qualification for such offers.
Bundling is another way of saving on your business insurance. Here you get to combine different policies into a flexible policy plan. It is a comprehensive coverage that helps your business save money.
As a business owner, extensively communicate with your business insurance agent about the risks your company can encounter and the best policy to mitigate such events. Ask your business insurance agent questions to clarify what suits your business and industry best.
Octamile, the leading insurtech, has partnered with various trusted insurers who use our all-in-one digital insurance platform to ease, speed up and automate the insurance process for businesses like yours. You can now purchase policies and manage your insurance needs on one platform. Click here to connect with the right insurer for your business needs.