Insurance

Insurance Do's and Don'ts for Small Businesses

When it comes to Insurance, Small Business Owners have a lot of questions. Understanding what type of Insurance you should buy and how to buy it are only some of the answers that need to be found. So what else do small businesses need to keep in mind when it comes to Insurance and how do they get the Insurance that's right for them? At CAA Insurance Brokerage, we've put together our list of do's and don'ts for the small business owner so you can keep track of what you need, before you make the decision to buy.

Do's

1. If you're opening a new Small Business, seek the advice of an insurance broker during the start-up process and ensure you have policies in place from day 1.
2. Since you've got so much else to do, simplify your life by using an insurance broker who can handle all of your insurance requirements.
3. When purchasing insurance, use a broad form of business property insurance to protect your investment.
4. When it comes to hiring, you'll want to consider a health insurance policy that will enable you to both recruit and retain good employees. If you already have employees, consider carrying employment practices liability coverage.
5. Though it should already be a part of your mandate, maintaining a clean and safe work environment will help your employees avoid injury and will keep your premiums down.
6. If you rent the premises, include your tenant improvements in your property insurance policy. An example of a tenant improvement would be upgrading from linoleum to ceramic flooring.
7. As your business grows in size, your insurance coverage should likewise increase. Be sure to keep on top of the coverage you have and know when to call your insurer to increase coverage for your small business.
8. Likewise, as your business will become your income, you'll want to ensure that your insurance coverage can protect your well-being in case of a disaster. Always consider business interruption insurance when investigating an insurance policy for your small business.

Don'ts

1. Above all else, don't believe that you can afford to be without insurance. The truth of the matter is that you can't afford not to have it.
2. Don't even consider self-insuring any part of your worker's compensation risk.
3. Though your business may start small, don't fail to recognize your regular employees as more than just contract workers.
4. Despite your best efforts to maintain a clean environment, your employees will need to be reminded of the rules. Do not overlook ongoing employee training on maintaining workplace safety.
5. As you well know, your reputation is key. Your customers wouldn't deal with a disreputable merchant, so don't deal with insurance providers with substandard ratings.
6. When purchasing insurance for your small business, treat your insurer like a partner in your investment. Don't withhold information from your insurance provider and be sure to provide your provider with a complete understanding of your risks.