 |
Click image to view larger version |
An umbrella to protect
Save money and get the right insurance coverage for your business with these 14 tips
- Before speaking with an insurance representative, it is always a good idea to write down a clear statement of your expectations.
- Do not withhold any important information from your insurance representative about your business and its exposure to loss. Treat the individual as a professional helper.
- Get at least three competitive bids using brokers, direct agents and independent agents. Note the interest that the representative takes in loss prevention and suggestions for specialty coverage.
- Avoid duplication and overlap in policies; you will be paying for insurance you do not need.
- Ask your insurance firm if it's an ‘admitted insurance company’. If so, it should have a solvency fund should a catastrophe put the insurance company in danger of going under. An unadmitted carrier has no such solvency fund.
- The small businessperson should not consider any form of self-insurance. The pool of funds that
is necessary to safely insure losses is extra-ordinarily large.
- Get your insurance coverage reassessed on an annual basis. As your firm grows, so do your needs and potential liabilities. Underinsurance ranks as a major problem with expanding firms. Get an independent appraiser to value your property; if it has been more than five years since it was last appraised, chances are you're in for a surprise.
- Keep complete records of your insurance policies, premiums paid, itemised losses and loss recoveries. This information will help you get better coverage at lower costs in the future.
Insurance Losses
Virtually all policies require notification of an accident within 24, 48 or 72 hours of the incident. The claim itself does not necessarily have to be filed at this time. Failure to report the loss may nullify your right to recovery.
- There must be some proof of loss, though you will have a reasonable period to provide any documentation, if needed.
- The insurer usually has three options when it comes to fulfilling the terms of a replacement policy: paying cash, repairing the insured item, or replacing the insured item with one of similar quality. Don't hesitate to let the insurer know if you prefer one of these reimbursement methods.
- Disputes regarding the amount of the settlement are put to arbitration. Thus an independent appraiser acts as a judge in the conflict. Don't hesitate to use this system of resolving differences. If a compromise cannot be found, a lawsuit can be initiated.
Consider These Issues
Before Buying Insurance
Ask yourself these NINE questions before purchasing insurance to determine your needs
Despite the proliferation of package policies, insurance is not a one-size-fits-all issue. You need to understand what your risks are, how much liability you can handle, and what you need to cover.
Some issues to consider:
- Do you own or lease your property? As an owner, you are responsible for the building and its contents. As a renter, you need to cover your equipment, supplies and inventory.
- Is your work performed solely in your office or plant, or do you routinely travel with equipment and inventory, or work off-site?
- What is the likelihood that your product could cause injury or damage? To what degree?
- Have you made provisions in case you suddenly die or become disabled?
- Do you have employees who work from their own homes or take equipment or materials home with them?
- Are there other businesses you depend on but have no financial interest or control in?
- Does your company own vehicles, or do you use your personal car in the course of business?
- What types of personal insurance, such as medical, disability and life, do your employees need?
- How important is insurance to your ability to offer a competitive compensation and benefits package in order to attract and retain high-quality employees?
|
|
)
