Insurance Tips For Small Business

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Having worked in and started a few small businesses myself, I know what a tough job it can be.

We all know the cliche about small business owners having to wear many hats, and it is just as true today as it has ever been.

With so much to do there are always some areas that perhaps don’t get the attention they deserve, and unfortunately business insurance often falls into that category.

Do you know why? Because insurance is boring! Well it certainly is when compared to many of the more exciting and interesting aspects of small business.

But I can tell you from experience that getting your small business insurance right is one of the best investments that you can make in your venture.

Of course you won’t know this until something goes wrong though…

So my insurance tips for small business aren’t so much about the technicalities of each insurance policy, but more about making it easier to protect what you’ve worked so hard to create.

Tip # 1

The most important tip that I could possibly give to any fellow small business owner is to seek professional advice.

I know that as owners we like to do as much as we can on our own, and I myself take on a lot of tasks that I know should be outsourced to professionals, but insurance isn’t something to mess with.

Of course you can look after your own business insurance, and I have faith that most successful small business owners could sort out their own insurance in a satisfactory manner.

But here’s the thing. For someone without business insurance experience it could take weeks to really understand all of your risks and to properly understand all of the policies available.

That’s before you even start to compare premiums to ensure you’re getting good value in addition to appropriate coverage.

Does the typical business owner have a spare couple of weeks to research insurance? You’d be lucky have a spare couple of days – or even hours!

Even successful entrepreneur Mark Bouris agrees that small business owners should seek professional advice from an insurance broker, as you can read in this article which appeared in the SMH.

Tip # 2

My second tip is to look your business insurance premiums as an investment rather than an expense.

Of course technically they are an expense, but if you were to suffer an insurable loss in your business you will see that your insurance was a very good investment indeed!

I was involved in a claim last year for a small business that suffered damage in the Queensland floods.

The eventual claim pay out was $50,000 and her premium was just $2,100. That’s a pretty good return in my opinion.

Could that small business have survived without the successful $50,000 claim? Perhaps, but it certainly wouldn’t be in such good shape today.

I would argue that her $2,100 investment in her insurance was the best money she has ever spent in her business.

It’s also worth pointing out that the client used a broker who ensured they had proper flood cover in place. Without this her claim would have been declined.

Tip # 3

My final tip is to not treat your business insurance as ‘set and forget’.

Things change in business all the time, and especially in small business. Your insurance that was perfectly suitable two years ago may be useless today.

Each year you should review your insurance policies, perhaps with the assistance of an insurance broker, to ensure that your cover is still adequate for your needs.

During this process you can also check to see if other any insurance companies may be able to offer you a better deal.

Just because your insurer was offering the best value premiums three years ago does not mean that they are still the best option.

Bonus tip

I’ll wrap things up with one final tip…

As the immortal Nike slogan goes – just do it.

As a small business owner it is so easy to get caught up in running your business, forgetting about things like insurance.

You work so hard to build your business, so why risk losing it all by not having the right insurance in place?

If you’re reading this article you obviously have some interest in protecting your business, so give our team a call on 1300 542 245 and have an obligation free chat with an expert.

Alternatively you can complete our online quote request to find out how much insurance could cost your business.

Stop procrastinating – the last thing you want is to suffer a major loss in your business whilst you were still just thinking about insurance.

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