Taking care of your business isn’t always easy, and there are so many things to take care of. You have to worry about how well it is running, whether the employees are satisfied, or if you’ll meet your goals. On top of that, there are a million other details that can go wrong at any time. That’s why it is crucial to get a business insurance policy. Unexpected accidents, lawsuits or natural disasters can ruin your business if you don’t have proper insurance. However, the sheer number of insurance types can be overwhelming. We’ll help you learn how to choose the best business insurance policy for your needs.
When should you get a business insurance policy?
No matter if you’re just starting a business or have decided to relocate it, this is a crucial step that you must do. Especially when organizing an office move! As you already may know, relocation is nothing you should take lightly. When it comes to relocating a business, there is much more preparation involved than with regular residential moves. One of the differences is that you have to have a business insurance policy when committing to this move. There are many types out there, and we will list the most common ones.
Types of insurance policies
- General insurance – this protects you from financial loss as a result of various situations. Imagine you are shipping from USA to Bahrain, and your moving company decides not to cover for the loss. This rarely happens. However, if it does, your business insurance will most likely cover the damages.
- Product insurance – this type of insurance will protect you against any product defects that led to physical harm.
- Vehicle insurance – this type will cover any potential damages against a vehicle that you use for business purposes.
- Worker’s compensation insurance – for the most part, this is the only type of business insurance policy that is legally required. Your employees have to know that they will get reimbursement or help in case they injure themselves on the job.
Deciding which business insurance policy you should get
We’ve only covered a few main types of policies that businesses usually get. However, you know that small and big businesses differ in many ways. Not just the way that they are run, but also depending on their nature. Eventually, before you make the choice, it all comes down to your wish. How much risk are you willing to take?
Risks that come up when relocating a business
Even regular residential relocation brings along so much risk, but not to mention moving an entire business! That’s a whole different story. Because so many logistical problems surround business relocation, you should always consider getting professional help. When you’ve got a company that will take care of all the logistics for you, then you don’t have to worry as much. They will make sure that nothing gets damaged during transport. Also, they will take care of the customs clearance and all the necessary paperwork that you might have overlooked.
Not every insurance policy will be adequate for your company
As we already said, buying proper insurance requires some thought and research. It is not a waste of money, but a simple investment in your business and its well-being. Much like you carefully pick where (and how) you spend your money in the business industry, this will also have to be very carefully done. For example, if you over-insure the company, it could be a big financial burden on your business. On the other hand, under-insuring your company can lose you large amounts of money in the long run. It will all depend on the way you run the business, and on its nature. If your business is a limited liability company (LLC), you most likely won’t need high coverage.
Factors which will influence the cost of the insurance
- Business location – if your business is based in a city with a higher crime rate, your insurance premium will most likely rise. The same thing will happen if the office building is older or has bad safety standards.
- Employee’s driver’s history – in case you are considering getting vehicle insurance, which we mentioned above, you will have to take this aspect into account. The vehicle insurance policy will be more expensive if you’ve hired non-reliable drivers.
- Claim history of your business – even though this is very obvious, we still have to remind you of it. We hope that your company doesn’t have many claims against it, otherwise, you will end up paying a lot more money each year for insurance policies.
Who to talk to when choosing a business insurance policy?
The most difficult thing is always the start. Where to start and who to call are the questions we will try to answer for you. Once you have analyzed your company’s needs and thought through the risks that you may encounter, it’s time to get someone to help. First things first, you should contact your company lawyer. They will know everything there is when it comes to insurance policies. They are familiar with your company’s needs and the risks you definitely shouldn’t take. Also, you might want to get in touch with freight forwarders in Bahrain, if you are looking to do business elsewhere. Our specialized forwarding team will have the information you need about transporting goods out of the country. In any case, you won’t be on your own during this stressful time!
Things to keep in mind
We’re almost at the end of our story about choosing a proper and adequate business insurance policy. One last thing we want to remind you of is the following. Don’t forget to seek the help of a professional insurance agent to assist you with this choice. Also, you might want to consider buying an umbrella insurance policy. This is the one that provides additional coverage on other things that aren’t necessarily protected with other insurance types. Do proper research and take your time to pick the perfect policy for your business!