What profession is the most risky or dangerous? Soldiers, athletes and boxers – they occur in your mind first when you think about “danger”. In fact nowadays the most risky profession is a commonplace businessman. Many factors exist that cause this situation. Economics of many countries suffers from crisis nowadays and very often an entrepreneur can’t predict financial situation even for the next year.
Yes, business is connected with risk. This indisputable truth is known by each businessman. However, everyone dreams to reduce risks, or at least to shift responsibility to someone other. Meanwhile, there is a way to make your business, your favorite lifework, more stable and steady to various negative factors.
Business insurance is not a myth. It is the reflection of modern reality. Nevertheless you will spend at least two hours with your agent in order to find the best insurance quotes for your business. It is quite hard to insure business risks as brokers and insurance agents understand – the possibility, that the insured event will happen, is very high. So the insurance company, he works at, should pay the coverage. It sounds not so cheerful to representatives of an insurance company.
But some business risks can be insured. They are divided according to types of business insurance.
There are such types of business insurance like business liability insurance, business property insurance, small business insurance and medical business insurance.
Business liability insurance is that type of policy that guarantees the coverage of business risks which an average entrepreneur meets in his professional life. It is important to emphasize that these risks must be out of a businessman’s control. It means that if you had some financial loss because of your negligence, this loss won’t be covered.
The following business insurance quotes usually are offered by agents to their clients.
- Insurance of loss. You can insure financial loss that took place as a result of political events in your country or some commercial events you couldn’t influence on.
- Insurance of financial resources, which are owned by a businessman. To this group for example bank accounts belong.
- Insurance of loan. In case if your borrower isn’t able to repay the loan, a businessman still can get it from the insurance company if he cared about it in advance and added the necessary quote to his policy.
- Insurance of money. It is possible to insure a certain amount of money that was enclosed in investments or innovations. Besides, businessmen can insure deposits or credits from different financial risks. In fact this option is chosen by entrepreneurs very often.
- Finally, it is an insurance of production stop – in case if you can’t continue producing your goods because of damage of property or impossibility to get money from your account. Very often some incidents happen. Your office can be damaged by fire or flood; some third parties can spoil your property on purpose to stop your production. For this particular situation another type of insurance exists. It is called business property insurance.
In order to get business property insurance, a businessman can claim for one of two existing types of policies. They are all-risks policy and special risk policy. As it is seen from the names, the first kind of policy can provide his owner for full coverage in any situation he was involved. Of course if you get all-risks policy, you are guaranteed to receive money for your property in case of trouble (flood, fire, vandalism). But you shouldn’t forget that this type costs much more. So a lot of businessmen prefer the second, special type. In this case you have to consult your agent or broker. Every business area is specific, so some risks are more probable for you. The others – on the contrary – can hardly happen in your business life. For example, if you are the owner of a bakery, the possibility of a fire is more evident than in case you own flowers shop. So for sure you have to include this quote to your policy if you have bakery. Thus you should discuss all the possible risks for your business property and get special risks-policy. It is much cheaper.
Running a small business is quite costly in USA nowadays. We won’t discuss the reasons of this situation – we will just try to find the way out of it. Small business insurance cost must not be high. At the same time, it must be enough to get at least minimal coverage if some disaster or commercial event happens and influences on this area of business.
In fact the owner of a small business, even if it is home-based, has to get business liability and business property insurance like the owner of a large business as well. Even if you work by yourself, you are recommended to get professional liability insurance. This kind of insurance guarantees you coverage in case of some professional errors or omissions. It doesn’t matter, what you are by profession. Teachers, accountants or lawyers can get this policy. In fact for doctors it is even obligatory in some states.
As for some certain price of an insurance policy – it differs. Let’s speak about some general American small company that consists of 1-2 owners, a director and 4-5 employers. Usually the annual revenue of this company fluctuates among $30,000 to $900,000. The general liability coverage of this company will cost to its owner $500-$800 per year. Of course it is the recommended minimum and it will be much better to add some special quotes to this general policy that will increase this amount to some extent.
This kind of insurance is quite disputable nowadays. Since 2015 “Obamacare” law works and provides business owners for some new rights. Those, who run a small company (the one that has less than 100 employers), are not obliged to get health insurance policy for their workers. Thus business health insurance is the problem of the worker himself, not of his boss. Nevertheless there are some subsidies a business owner can get if he provides his employers with insurance policies. If you run your own business, you should study these subsidies carefully in order to get some discounts for your business and to please your workers simultaneously. On the contrary, if you are an employer, from now you have to care about your business health insurance yourself and pay the bills.