Business Insurance Strategies for Comprehensive Coverage

When it comes to steering a business through the unpredictable waters of commerce, insurance isn’t just a lifebuoy — it’s the unsung hero that can turn the tide in your favor. Entrepreneurs who’ve braved the stormy seas of startups and scale-ups share their insights on navigating the often complex world of business insurance, revealing strategies and stories that could be the difference between smooth sailing and sinking. Dive in to discover their secrets and safeguard your venture against the unforeseen.

Combining Traditional and Non-Traditional Insurance Products

Utilize a combination of traditional and non-traditional insurance products.

Traditional insurance products might not cover all the risks a modern business faces. By supplementing these with non-traditional products, like cyber insurance for online businesses or income protection for freelancers, companies can ensure more comprehensive protection against the unique challenges they face.

The payoff regarding adequate coverage and financial savings can significantly contribute to your business’s long-term success.

Chad Sultana, founder of Chad Sultana — Marketing Consulting

Protecting Your Business from Digital Threats

Even relatively small businesses have a huge number of different insurance considerations to make, but one that’s becoming increasingly important across industries is cybersecurity insurance. The simple fact here is that data breaches are a question of “when” rather than “if” for most businesses. All it takes is one user or customer who falls for a phishing attack to potentially compromise your internal data. While taking precautions to reduce risks is essential here, buying insurance must be part of the mix. Payouts from cybersecurity insurance can help businesses pay for credit monitoring, perform forensic studies to identify vulnerabilities and compensate injured parties.

Nick Valentino, VP of market operations of Bellhop Atlanta Movers

The Benefits of a Business Owner’s Policy

I recommend a Business Owner’s Policy for any small business owner or registered entrepreneur. Different company levels require slightly different insurance needs that can increase the cost of your policy. With a Business Owner’s Policy, your provider will offer financial protection against personal injuries and damage to your equipment or business property. 

Since you own a small business, your insurance needs are likely minimal compared to, say, a major enterprise with thousands of employees. This means that you don’t need to apply for multiple separate policies — just the Business Owner’s Policy should do to cover major claims. It also works out far cheaper for your budget.

Stephen Hasner, managing partner at Hasner Law PC

General Liability Insurance for Employee and Customer Safety

If you’re running an agency or any business with employees, you should consider getting general liability insurance. Say an employee gets injured while on the job — this policy will help cover any medical expenses incurred to help that worker treat and recover from the accident. It also extends to any personal injuries customers might suffer while in your office or when handling business affairs with your team. Slips and falls, collisions, and fractures are all cases I’ve witnessed and may merit legal coverage on your part.

It’s best to get general liability insurance as soon as possible in your business because time without the policy can make it more challenging to acquire one! If you’ve had previous personal injury incidents occur, the insurance provider may consider that an increased risk that you’d actually need coverage more often than anticipated. 

The price of your general liability insurance may also vary depending on the number of business branches you need covered or the number of employees you’d need to account for through the policy.

Thaddeus W. Wendt, CEO of Feller Wendt LLC

From Brokers to Direct-To-Client Offering

Historically, business insurance required the use of brokers to secure policies. While this system offered certain advantages, such as a sense of ‘hand-holding’ through the process, it had many disadvantages. Specifically, no insurance broker can be an expert in all business industries. Since the adoption of the internet, many carriers have begun to offer direct-to-consumer style insurance options where business owners are able to select options based on their needs, compare quotes, and secure policies without the need for a broker. A major advantage of this approach is that business owners can work with carriers that are specific to their industries, understand the nuances, and offer products specifically designed for their risk profiles, with an added layer of convenience. The result is a properly insured small business with the support of an industry-specific carrier.

Daniel Steadman, CPCU, VP of underwriting at Veracity Insurance Solutions, LLC

Leveraging Networks and Proactive Strategies to Optimize Business Insurance

As a real estate investment business co-founder, I’ve discovered that beyond assessing risks, working with brokers, and leveraging technology, building a strong network within your industry is a game-changer for navigating business insurance. 

This network includes other business owners, legal advisors, and industry associations. They offer insights into their experiences with insurance challenges and solutions, which can guide you in making informed decisions for your own business.

Another often overlooked strategy is actively engaging in loss prevention programs. Many insurers offer discounts or incentives for businesses that implement safety measures, security systems, and regular maintenance schedules to prevent claims. 

By investing in these programs, you not only reduce the likelihood of needing to file a claim but also potentially lower your insurance premiums, making your coverage more cost-effective in the long run.

These strategies emphasize a proactive rather than reactive approach to business insurance, ensuring your coverage is not just a safety net but a strategic asset for your business.

Ryan Zomorodi, COO & co-founder of Real Estate Skills

Alternative Risk Transfer Solutions

One often overlooked strategy is exploring alternative risk transfer (ART) solutions. 

ART options like captives, risk retention groups, or self-insurance pools offer businesses a way to manage their risks more directly and often more cost-effectively than traditional insurance policies. These alternatives can provide tailored coverage, potentially lower insurance costs, and greater control over claims processes.

Roman Zrazhevskiy, CEO of MIRA Safety

Transitioning from Basic to Customized Business Insurance

Early on in your business, relatively simple policies are often enough for adequate coverage. But as your business grows and you scale operations, things get exponentially more complex. Work with a specialized broker who understands business insurance as a whole and the deeper complexities of your industry or niche. They’ll understand what insurance needs stepped up, down, or tacked onto your existing policies. 

If you keep growing, you’ll likely need to switch from generic policies to customized ones. In that case, get a broker to help you work directly with insurers to tailor the policy to your needs.

David Ciccarelli, CEO of Lake

Ensuring Accurate Quotes

When trying to secure business insurance for your company, you might be quoted incorrectly. The challenge is that every carrier interprets risk differently because they look at different factors. This can result in inadequate coverage for your business. The best way to avoid this is to pay attention to the questions an agent asks when they’re rating your business. Make sure they’re asking in-depth questions and that they’re being thorough. Help them so there are no discrepancies.

Dustin Lemick, CEO of BriteCo Jewelry Insurance

Understanding Deductibles and Adequate Coverage

Deductibles can be tricky for businesses that want to keep premium costs low because you’re always balancing lower premiums by paying more out of pocket. So, you need to be able to easily afford higher deductibles if something goes wrong. 

Some businesses choose minimal coverage to save money, which can lead to astronomical costs later. Liability insurance is only required in some states, for example, but every business should carry liability insurance if there is any chance of property damage or personal injury. Your first priority with insurance shouldn’t be saving money. First, you need to determine adequate coverage and work backward to find the best deals.

Robert Kaskel, chief people officer at Checkr

Insuring Intangible Assets

So many leaders unintentionally underinsure their business, which can lead to big trouble down the road. While some business asset values are easy to calculate, like equipment and other physical assets, your intellectual property, customer data, and other intangible assets are much more complex. That’s why it’s usually best to consult an insurance broker with a strong understanding of intangible asset values. 

And as your business grows, those intangible assets can grow quickly. You must review them often and ensure your coverage keeps up. Otherwise, if something goes wrong, you could be held financially liable and lose everything you’ve worked so hard to achieve.

Hardy Desai, founder of Supple

Business Income Loss Coverage for Small Businesses

There are many options when it comes to business insurance, and picking the one that is best for your business comes down to the type of coverage you need. For example, small businesses can especially benefit from business income loss coverage, which protects you in the event that your business has to temporarily close due to a covered incident. If you have this type of coverage, you’ll be in a better position to mitigate income losses than a business without insurance.

Ann Martin, director of operations of CreditDonkey

Utilizing Online Tools and Independent Brokers

One strategy I recommend is leveraging online comparison tools and platforms that offer unbiased reviews and insights on insurance providers. 

These resources can help business owners understand the types of coverage available, such as liability, property, and workers’ compensation insurance, and what suits their industry and scale of operation best.

Consider consulting with an independent insurance broker. Unlike agents who represent specific insurance companies, independent brokers can provide a broader perspective, comparing offerings from multiple providers to find the best fit for your business needs and budget. This personalized advice can be invaluable, especially for businesses in specialized industries with unique risks. 

Remember, the goal is not just to find the cheapest option but to secure coverage that adequately protects against potential risks specific to your industry and operation scale.

Phil Strazzulla, founder of SelectSoftware Reviews

Leverage Group Policies and Business Associations 

A vital strategy in securing the right business insurance involves understanding and taking advantage of group policies and business associations. Many small to medium-sized enterprises overlook the potential benefits of joining business associations or groups that offer specialized insurance plans. These groups often negotiate insurance rates at a bulk discount, making comprehensive coverage more affordable.

Participating in these associations reduces costs and offers a network of peers facing similar challenges and needs. This network can be valuable for sharing best practices and advice on managing business risks and insurance needs. 

Likewise, these associations typically provide access to a wider range of insurance products tailored to the specific requirements of their members, ensuring that businesses can find coverage that closely matches their operations without the hassle of navigating the complex insurance market alone.

Shawn Plummer, CEO of The Annuity Expert

Reducing Costs Through Proactive Measures

Many insurers offer discounts or more favorable terms to businesses that proactively minimize risk through employee education and strict safety protocols. If you demonstrate your commitment to creating a safe and knowledgeable work environment, you can reduce the likelihood of insurance claims and negotiate better rates with insurers. This is particularly relevant in industries with higher physical risks, but it’s also beneficial for businesses looking to minimize the risk of cyber threats through employee cybersecurity training.

Ian Sells, CEO of Million Dollar Sellers

Quickly Adaptable Policies

Working in an event management company, one important thing I learned is that your needs and necessities in a business will keep changing. And for this, having dynamic business insurance is very important. Look for an insurance policy that can be adjusted quickly as needed. This way, you’re only paying for what you need in the business. When it’s flexible, you’ll have ease of mind as it can be changed anytime. Many insurers provide this plan, and if you really like an insurance plan, there’s always a chance to negotiate with them and explain your point. Have a clear agreement in your contract. This makes sure your business is very well protected from everywhere, and you’re not paying extra for anything.

Len Gauger, owner of Connect Space

Tailoring Business Insurance for Restaurants

Securing the right business insurance for restaurants is especially complex due to diverse coverage needs.

Every restaurant is unique, necessitating a tailored approach for each policy. Factors such as location, operations, number of employees, and additional services like delivery need to be considered when determining coverage.

Challenges include rising insurance costs influenced by inflation and reinsurance rates, staffing shortages leading to increased workplace injuries, and new risks from innovations like outdoor dining and takeout services, which we deal with on a regular basis.

Another example is compliance with state and local regulations, including those related to liquor liability and workers’ compensation, which are essential for restaurants to operate legally and avoid penalties.

Strategies for securing insurance would involve assessing specific risks, understanding coverage options, investing in safety and training, conducting midyear evaluations, exploring loss prevention technology, and considering additional coverages like cyber insurance and umbrella policies. 

It goes without saying that maintaining communication with agents is key to all of it.

Sebastian Hov, CEO of 18 Insurance