Small Business Insurance Insurance Ideals :

The best way to protect or safeguard personal assets is by getting them insured. Insurance is the ultimate savior to which people turn to when they are confronted by dire situations. Today, most of the major personal assets like a home, a car, valuables kept in the bank, safe deposits and almost every

important possession have insurance. Life insurance has been in existence for the past several decades. Insurance plays a vital role even in the business sector with every firm having its own insurance policy. The size of the firm does not matter and even the smallest business unit must have its insurance policy.

Need for Business Insurance :

Insurance is a protection or shield against any future calamity or tragedy as well as also a protection against uncertainty. There is no other sector that is as unpredictable as the business sector. In this sector uncertainty lies at every corner whereas unpredictability is the constant companion. This makes insurance mandatory for every businessman before he can even embark on his firm. Often entrepreneurs commit the mistake of not getting his unit insured, which is very risky and not advised at all. Insurance covers the business unit from financial losses, thefts, bankruptcy and even from disability of the entrepreneur. All these benefits make insurance an important factor in the overall scheme of things in the working of the business unit.

Basic Insurance Requirements :

While selecting an insurance program, the entrepreneur has to make sure that he follows certain basic guidelines. Only deciding about getting an insurance policy done is not enough. The small businessmen must plan and ensure that the insurance fulfills certain basic criteria. The following are some of the fundamental steps that an entrepreneur needs to take before finalizing on any small business insurance plan:

1) Before finalizing on the insurance, the entrepreneur must identify the exa

ct ways in which the company can suffer losses.

2) The entrepreneur must study the various insurance policies thoroughly before finalizing on any particular business policy.

3) Entrepreneurs must also learn to organize the insurance management program.

4) Entrepreneurs must also take some professional advice regarding the business insurance policies.

5) Business firms also require insurance cover for certain expensive and high profile machines.

6) Entrepreneurs must make sure that the biggest loss area is covered first.

7) Also, entrepreneurs must avoid duplication of insurance at all costs.

Types of Small Business Insurance :

The small business units must give great importance to insurance. The smaller units are in the growing phase and cannot afford and sustain any major jolts in their business cycle. Hence, they must ensure that majority of the aspects have an insurance cover. There are various types of insurance that smaller business firms can opt for. They are as follows:

1) Protecting the Unit against Risks: Protecting the business against any risks is of prime importance. Especially, getting the business liabilities insured is of significant importance. This insurance would safeguard the unit against any property loss or personal injury.

2) Disability Insurance: It is important that the entrepreneurs are protected against accidents and injuries. If the entrepreneur becomes disabled then he must have some income on which he can bank and which can support him during the recovery period. This is disability insurance and is a must for every entrepreneur.

3) Insurance against Fraud: It is very important for small business owners to guard themselves against any fraud. Especially, in the current situation when there are increasing number of cases of Workers Compensation Fraud the insurance against fraud is a must.

4) Health Savings Account: The health savings account or HSA is a policy through which employers and employees can decrease the healthcare insurance costs to a great extent. The greatest advantage of HSA is that it allows tax-free savings. Today, the employers have to provide certain basic benefits to the employees the cost of which is increasing making it difficult for the entrepreneurs to cope up with. Hence policies like HSA that reduce costs provide a welcome change.

5) Fire Insurance: Insuring the business firm against fire is extremely significant. There are a large number of fire accidents and large-scale destructions due to fire that can cause huge property loss to the entrepreneur. Hence, insurance against fire is a must.

6) Insurance against Errors and Omissions: It is important for the business firms to have a contract with its clients to avoid any unforeseen problems. This contract is essential, as the clients cannot then claim that the firm did not fulfill all their demands. The E&O claim helps the business firm in limiting the liability.

7) Specialized Commercial Insurance: Specialized commercial insurance is essential for those business units that manufacture food products. Hence, it is necessary to cover the risks against contamination of food. This is called specialized commercial insurance.

How to file business insurance claim :

There is a specific method that entrepreneurs need to follow while settling their insurance claim. The entrepreneurs must take some immediate steps if there is any accident or any other problem in the business firm. The basic steps are as follows:

1) If there is any theft or fire accident on the company premises, the entrepreneur is expected to inform the insurance company immediately without any delay of time.

2) The entrepreneurs must carefully examine the policy and calculate the approximate amount that they can claim. They must make sure that what are the exact items that are covered under the insurance and what are not. Hence, they must get a fair idea of what would be the insurance amount that the individual can expect.

3) It is important that the entrepreneurs have a record of the earnings that the business produced before and after the disaster. It is also important that the entrepreneur has a record of the operating costs during the period of interruption. Entrepreneurs can also include the costs of advertisement and other overheads while settling the insurance claim.

4) It is important that the entrepreneurs get a minimum of two bids on the repairing or replacement costs for the items that were destroyed or lost.

Small business insurance is a fundamental support for all the upcoming business units. Entrepreneurs can take risks on the strength of the small business insurance and is hence their loyal friend.