It is not only a good idea to have insurance for your company, some types are also required by law. This means that you will need to have a decent understanding of what business insurance is, and what kinds you need, before you ever open your doors. For large or already established companies, it is a good idea to go over your plans on a regular basis to ensure that you are still getting a good deal.
Consider Group Captives
When you are looking into insurance for your business, it is a good idea to consider group captives. This is an alternative to self-insurance where a parent business creates an insurance company to provide coverage for itself. These are licensed insurers who have a very limited client base but are able to funnel any profits into an increased pool for future claim payouts.
Different countries, states and municipalities may have different regulations surrounding which types of insurance your company needs to have. This can be anything from the types and amounts of worker’s compensation to the types of coverage your physical building has. With a captive insurance company, you can have all of these needs covered for one premium or break it up into different risk pools, whichever will best benefit your business.
Not all coverages are the same and not every company will need each type of business insurance. For example, if you do not have a storefront, then you will not need liability insurance for one. However, some minimums are either required or strongly suggested such as worker’s compensation and general liability. You can compare different plans and even talk with professionals to help build the best package possible.
When it comes down to it, having the best insurance possible for your company means that you can stay in business longer a weather whatever comes your way. You can choose between captives and a variety of other insurance companies to find the best coverage for your needs.