Business Insurance Costs on the Rise – Buy Smart!
Making decisions about protecting all the related aspects of one’s business is quite a job. Some talk of small, medium and large businesses, yet perhaps this is like a person’s surgery, “minor” only to those who aren’t having the surgery done! Any business, regardless of size, is an investment of someone’s capital, time and expertise, and needs the fullest and most complete insurance coverage possible. Anyone in the position of making decisions about business insurance costs needs to gather a lot of information from a lot of different sources in order to know and understand what all must be considered, covered and ultimately purchased.
Where does one begin? There is an obvious list of items that need to be checked in the initial phases of determining the costs of business insurance. These would include:
- Tangible property (physical plant as well as equipment, tools, etc.)
- Time involved and potential work interruption
These are the front-line insurance concerns that require questions answered related to general liability, property values, workers’ compensation and professional liability.
Related to these front-line concerns would be business insurance costs associated with attendant items such as:
- Company transportation and commercial vehicle insurance
- Paperless information and the possibility of data breach (the number one area of growing criminal activity in the country)
- Legal fees
These costs seem to be going up annually, which might suggest a yearly review of the business insurance costs is actually very important, not simply settling for an annual renewal. Insurance companies need to be held accountable for excellence in customer service, given the fluctuations and increases in costs and claims.
Are there indirect expenses and losses that must be explored in putting together a total picture of business insurance costs? The most important asset to any company is its employees, and with millions of employees injured in job-related accidents:
- Is basic workman’s comprehensive insurance enough?
- Are there specific medical costs that may not be covered?
- Is time lost in terms of productivity (often an employee out of work upsets the rhythm of the work environment, reducing efficiency)?
- Is there a resultant loss of customers?
- Are there replacement or repair costs that may be associated with the accident?
- Has administrative time been compromised by investigations including all the paper-work related to the event itself?
In other words, after the basic insurance package is put together, a smart business owner will ask of the hidden and/or indirect expenses. These too must be a part of the overall costs of business insurance.
A final word might be simply to remind business owners that there are also personal insurance needs that the business often needs to handle, e.g. homeowners or renters, life, health and automobile. Might these also be part of the business insurance costs? As business insurance costs continue to rise, Kaups Insurance can help connect customers with reliable insurance companies who can answer as many questions as the customer can ask. There is no reason why business owners purchasing business insurance should not get the best “custom” packages at the lowest possible cost.
By David Olmstead
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