Insurance for Small Business

Although I can not, for legal and practical reasons, offer you a real insurance solution after having worked and lived in several countries around the world, I have discovered that there are several commercial insurance options that are very similar everywhere. Unfortunately, insurance can be quite expensive and often only proves to be a financial burden. In fact, it is probably the only thing you pay for and you expect that you will never get your money back.

If you are aware of this, it is important to understand that there are very good reasons to take out insurance from the company and, depending on where you work, the need for insurance can be absolutely essential. However, you do not always have to buy the proverbial farm.

With this in mind, it is important to know that insurers sell products they do not really need, as it makes their business more profitable. If there is something you like for little or no risk, it will be up to you to make sure you do not use it in this way. Without a doubt, it is quite easy to seek advice, but also to know that insurance sales are made on commission and more is always better for them.

When reviewing your insurance options, there are usually two options available, which include:

a) Property insurance that protects you against damage to your property. For example, your office burns and you lose buildings, furniture and inventory. If you are properly insured, you can claim a replacement of these things against your policy.

b) Legal liability for damage to third party property and / or injury to third parties. Generally, this protects you from losses caused by you (or your employees as part of your obligations) in which you can sue someone for this loss. For example, Your colleague burns a customer’s house while installing the air conditioner. However, remember that this usually only affects the things for which you are legally responsible.

While insurance is too much a topic to deal with here, it is important to understand that while there are several common options that are similar for different companies, the risks faced by each company are different. The risks that you can or want to take vary from one company to another. Therefore, it is important that you adapt your insurance to your risk needs, not just what the sales representative thinks it is.

The other thing you must understand is that the coverage of the insurance policies is often limited. Therefore, it is very important to understand exactly what you are buying in terms of coverage. For example, coverage against fire-related damage does not make sense against theft. And, unfortunately, many have fallen into this kind of trap where people believe they have coverage when they do not really have it. In a few words, make sure that it really ensures the eventualities (dangers) that concern you.

Then, consider the amounts or hedge values ​​you buy. Most premiums are calculated based on a combination of risk type (risk) and risk value (insured sum). The reality is that if you are not worried about the theft, do not insure it or do it for a smaller amount. Often, it is not necessary to insure the total value of your inventory or property because you can assume the risk, or it may not be a significant risk.