Is business insurance for small service businesses really that expensive?
My phone rang recently, and upon answering it, I was barraged for several minutes about why business insurance was so expensive.
On the other end of the line was an acquaintance who knew I was a business insurance professional. It seems my acquaintance was about to start a medical billing service and shared that fact with a friend who owned a taxi company.
Once she was calmed down, I was able to explain that every business was different. In the case of the taxi company, they were insuring a number of vehicles, a garage, and also had several dozen employees. In no way was this an apples to apples comparison.
We discussed the business insurance options available to our new entrepreneur.
The first part we discussed was that every business is going to have different needs, risk, and exposure. I pointed out that every business needs a combination of liability insurance, property insurance, and workers or employee insurance.
Our discussion included business owner’s policies, additional insurance coverage like errors and omissions, an umbrella policy, boiler and machinery or equipment breakdown coverage, commercial auto insurance and many different options. As you read this, much like our no longer frantic caller, you’re probably recognizing there are many options available to business owners and all businesses are different.
Work with a licensed insurance professional, let them guide you through the coverage options available to you now, and as your business grows. Make sure you are totally honest with your agent regarding the assets of your business, how much travel will be involved from driving to flying, and a review of any lease you be considering.
Together, you will create an insurance package that not only works for you, but is affordable as well.