Running a business is not a cakewalk; you must handle a group of employees and several operations and stay prepared for unforeseen losses. Thus, you should insure your business with a suitable insurance policy to prevent sudden accidents, damages, and losses.
Different business insurance policies are available depending on your specific requirements. Hence, it is crucial to ask your insurance provider a few questions to determine the best option.
Keep reading to know the questions you can ask your business insurance agent before opting for a plan!
Top 5 Questions You Can Ask Your Business Insurance Agent
As a policyholder, you may have various questions regarding the business insurance policy you are buying. Here are some of the essential questions that you may ask:
- Which Business Insurance Policy is Suitable for Me?
Considering the diversity of business types, insurance companies have launched multiple business insurance policies. You can select one based on your business’s requirements and your desired coverage.
For example, general liability insurance covers the financial losses due to the policyholder’s property damage. It also compensates the losses and injuries of a third party that occur in the workplace. Property insurance, employee benefits policy, etc., are also used to safeguard businesses from potential losses.
If your business possesses any vehicles, having commercial vehicle insurance is essential. This coverage protects against losses and damages incurred by your vehicle, its drivers, and third-party accidents.
- What are the Coverages Under My Business Insurance Policy?
Most business insurance policies cover the financial expenses incurred due to losses and damages caused to the business organisation, goods, services, and employees. It can be due to fire, explosion, natural disasters, burglary, etc.
However, the inclusions and exclusions of business insurance policies may vary depending on your chosen policy type. For instance, you can buy property insurance policies like shop or fire insurance, which will cover losses and damages caused to your business property. Conversely, an employee benefits policy will cover your employees’ needs, such as health and travel insurance.
- How to Claim My Business Insurance?
The insurance claim procedure is one of the crucial aspects that you need to learn beforehand. Unforeseen mishaps occur without prior notice, and once they occur, you need financial coverage to safeguard your business’s losses.
So, you should consult with your insurance provider about the claiming procedure while purchasing a business insurance policy. Ask him how long it will take to settle the insurance claim, whether you can make an instant claim, what the claiming procedures are, etc.
- What Factors Will Affect the Price of My Business Insurance?
Another essential question you should ask your insurance provider while purchasing a business insurance policy is about the things that can affect your insurance cost. Not all business insurance policies come at the same price.
The cost of your insurance varies depending on factors like industry risks, business type, number of employees to be covered, previous claims, etc. Understanding these factors can help you anticipate and manage your insurance expenses effectively.
- Is it Mandatory to take a Workmen Compensation Policy?
Employers are required by law to offer insurance coverage to their employees under the Workmen’s Compensation Act of 1923. Workmen compensation insurance guarantees that employees will get financial protection in the event of terrible incidents, assisting them and their families in coping with the circumstances.
- Agreed Value or Actual Cash Value: Which One Will Be Considered During Loss Settlement?
Insurance providers may use the agreed or actual cash value when claiming the loss settlement. As the name suggests, the agreed value is a predetermined value that the policyholder and insurance company have decided on.
However, actual cash value refers to the current market value of the business property after charging the depreciation. So, if you know the value that will be used during loss settlement, you can decide whether to repair the damages or replace them.
Correctly understanding the business insurance policy is necessary to make the right decision. So, consult the insurance provider and ask related questions to gain a deeper insight into the policy you are purchasing.
