Is business insurance worthwhile?

Is business insurance worthwhile?

First of all as a small business owner, like many, your business may not be adequately insured. Many small businesses don’t insure in the case of a fire, flood, natural disaster, theft, or personal injury.

Often as a home-based business owner you assume you are covered by your homeowner’s policy. Or perhaps you may be working long hours and pulled in too many directions. For that reason you may never get around to talking to an insurance agent about your business.

If you’ve been procrastinating on business insurance, consider this. If you are not insured, as a small business owner, you are more likely to be devastated in the event of an unforeseen loss. Business insurance needn’t be costly. You can save money on a bundled business insurance package. Or you can lower your premiums by simply increasing your deductible.

Take a look at these 4 essential types of business insurance designed to protect businesses of any size.

General liability insurance
Which protects business owners should they, an employee, product, or service cause personal injury or property damage to a third party.

Property insurance
This insurance protects business owners who own a building or other valuable assets. This would be as a result of fire, flood, vandalism, or theft.(e.g. equipment, computers, tools, or inventory)

Business interruption insurance
If business activity is suspended for a period of time, this type of insurance protects business owners from financial loss. (e.g. following a theft, flood, or other unforeseen loss).

Vehicle coverage insurance
Which protects your vehicles, as a business owner.. When vehicles owned or leased by the business are used by staff to perform their jobs or transport products/equipment and are involved in damage and collision.

Save cash with a business owner’s policy

A number of factors come into play when determining business insurance premiums. These include the type of business insured, location, gross revenue, and types of coverages required. A business owner’s policy (BOP) offers the most complete coverage in a customizable bundled package. As a result this type is the best value. This sort of policy typically includes:

  • Liability insurance
  • Property insurance
  • Crime insurance
  • Business interruption insurance and
  • Vehicle coverage.

Insurance for home-based businesses

If you run a business out of your home, you may prefer an add-on or rider to your homeowner or renter insurance rather than a separate comprehensive policy. This can be a cost-efficient option for solopreneurs who don’t own a large amount of inventory or valuable equipment. Consequently for an insured business owner, a fire, theft, or flood won’t greatly disrupt or devastate the business.

Also an ‘in-home’ policy is another option for home-based business owners who need greater protection than a rider or add-on to an existing policy can offer. For that reason this type of policy costs a bit more than a rider. But it does protects the owner and up to three employees against theft, injury, and other risks to the business.

Final tips

As a result when it comes to protecting your small business, your profit margins aren’t what should determine whether or not to get insurance. If something unexpected goes wrong and you are not insured, how great an impact would that be?

Above all get in touch with a reputable insurance company, or seek out an independent business insurance broker, to do a risk assessment for your business—then see exactly what kind of insurance you need.

If the reason that getting business insurance is due to cost, take heart. Your premiums may very well qualify as an end-of-the-year tax write off.

If you think your business might benefit from bookkeeping services; if you need someone to lodge BAS, if you need a bookkeeping software health check, setting up your books; don’t hesitate to get in touch. We’ll tailor a package that sets you up correctly from day one.

Contact Timewise Financial Solutions on 0419 181 082 or by clicking here today