How to choose the right insurance for your business
Thinking of opening your own business or just started out? Insurance is an essential safety net, but which one’s the right one?
You’re ideally looking to get the most protection for your business, yourself and your employees, while investing in the most efficient way possible. Here’s what to consider:
1. Asses your needs ☝️
First of all, you need a comprehensive overview of all insurances you need, or legally have to acquire. Of course, this depends on the industry you’re in, as well as the country where the business is registered in. When it comes to choosing insurance, the possibilities are endless. You probably don’t need all of them, but you should browse around and get yourself familiar with what’s out there and fits your needs. Popular choices for business insurance are:
- business property insurance
- business liability insurance
- business automobile insurance
- business umbrella insurance
The last one usually covers you for things that normal insurance won’t, so make sure to check it out!
When choosing the right insurance for your business, start with assessing your risk. For example, is your office in a remote area, or in a very safe one? Are you located on the ground floor of the building?
2. Have a look around 👀
Just like when you’re looking for a new pair of jeans, finding the perfect insurance for you will take some shopping around. This step is important, because it can save you time and money in the long run. Have a look at what’s new, what’s popular, what other entrepreneurs in your circle are choosing, and speak with a couple of insurance providers. Are you a bunq user? Head to bunq Deals and see if you can find something that you like there. For example, with Yezzer you can enjoy €25 cashback and 5% off your insurance premium.
Another thing to keep in mind is to choose a plan that grows with you. Some insurances have individual employee costs, which means that it can make scaling pretty expensive. Try to always plan for growth, even when looking at insurance plans, as this can help you save money.
3. What’s covered, what’s not 📜
Business insurance is not something you want to make assumptions around. As any insurance, it’s one of those things you hope to never have a need for, but if it happens, you want it to truly be there for you. Make sure you know exactly what’s covered (and what’s not): read the fine print no matter how boring that is, talk to an agent, ask all the questions you need to ask. This isn’t something you want to be surprised about.
4. Splurge on it 💸
Saving money is great, especially when you’re trying to start or grow a business. However, insurance is one of those things worth investing in, to make sure one day you don’t have to pay a lot more money that you thought. The general advice is to go for the broadest, most comprehensive offer you can afford at the stage you’re at. Granted, not everyone can afford to put hundreds in monthly fees, so adapt this to your needs - just make sure you’re covered for (almost) all possible scenarios.
Which brings us to...
5. Seek professional advice 🤵
Researching and analyzing most insurance plans can definitely be done by you and it just takes a bit of time. However, once you have a pretty decent idea of what you need, seek professional advice before making a last call. Sure, this can mean a bit of an extra investment at the moment, but the right person will help you select the best policies for your business, and probably point out a couple of things you didn’t consider. Their input will most likely lead to a reduction in your overall insurance cost and help you choose what you need - and what you don’t.