Protect Your Start-Up Venture by Purchasing Business Insurance Coverage

Many individuals dream of starting their own business and becoming successful entrepreneurs. They cite many reasons for why they want to start a business. It may be to achieve financial independence, gain control over their own time and schedule, leave a corporate job behind, bring about change to the world, etc. Whatever the reason, the start-up process can be complex, filled with risks and rewards. Becoming an entrepreneur is a process that requires a detailed assessment of your abilities in the face of the opportunities, challenges and risks that lie ahead in your entrepreneurial journey.

If you decide to start a business, it is important to assess the level of risk involved. When starting a new business you have limited resources to meet the business’ needs. Depending on the type of business, the cost of starting up can be substantial and your cash reserves can dry up faster than expected. Said start-up costs are frequently underestimated. Furthermore; it is not unusual for additional expenses to arise that were not previously contemplated. Your business capital must be employed to cover many different needs. Such needs may include: registration and licensing fees, leasing business premises, the ongoing cost of operations, insurance premiums, hiring professional service consultants, utilities, taxes, etc. each of which may be essential to your business operations.

When considering the vital areas that require investment when starting your business, you should not forgo purchasing a business insurance policy. An insurance policy is necessary to protect your business and to increase its odds of success in the long run. Business insurance provides the protections necessary to indemnify (compensate) your business for the covered losses it suffers, to defend it against lawsuits and to pay for judgments awarded to third parties for which your company may be held liable. You may have little or no control over the losses that affect your business. However; by being properly insured you are transferring the risk and uncertainty of loss to an insurance company in exchange for a fixed premium amount.

Purchasing insurance coverage as a start-up company does not have to be a complicated process. By using the financial projections you set for your business during the planning stages, you can provide an insurer with a basis from which they can analyze and estimate your business’ potential exposure to loss. From said analysis, the insurer can establish an insurance premium commensurate with the level of risk that your business represents. The method of calculating the insurance premium is beyond the scope of this article. However; finding an appropriate insurance rate/premium depends on many factors such as your past experience in related fields, historical loss data on similar businesses, market trends and conditions, the underwriter’s intuition, etc.

In its present state, the insurance marketplace is very competitive. Business insurance coverage is readily available from multiple insurance companies. The intense competition has led to downward pressures on insurance rates meaning that you, the business owner, can enjoy greater coverage at lower premium. While insurance market conditions can change, many of the catastrophic losses of recent years (such as the hurricanes and wildfires of 2017) have failed to reverse the trend on insurance prices in a significant manner. Competition remains intense and insurance companies continue to search for new ways to win your business and write your insurance policy.

You should work with an insurance broker whenever you are searching for business insurance solutions to protect your company, particularly when you are starting out. Similar to bankers, lawyers or accountants, insurance brokers provide important and specialized professional services to your business. Insurance brokers can help you navigate the insurance marketplace and ensure that your business finds the right insurance solution to fit its coverage needs.

Setting the right insurance program in place at the beginning of your business venture can go a long way towards ensuring that your business is adequately covered as it grows. An insurance broker can help structure the initial insurance program on your behalf and they can assist with its management. In so doing, an insurance broker can ensure that your business remains properly covered as its insurance needs change over time.

The cost of the services insurance brokers provide when sourcing insurance coverage on your behalf are part of the premium quoted by insurance companies for all the policies they write. Insurance brokers are compensated based on commissions. That means that insurance brokers earn a percentage of the policy premium under the written insurance contract. As such; you are able to use the services of an insurance broker without incurring additional costs beyond the insurance premium quoted under the policy. It is recommended that you use the services provided by insurance brokers since their knowledge of the insurance marketplace and expert advice can lead to important premium savings, coverage enhancements or to the avoidance or the resolutions of coverage disputes.

Risk Reinsurance Holdings, Inc. can help you find the right insurance solutions to protect your small business or start-up venture from loss. We are an independent insurance agency which allows us to work with various insurance companies to find coverage solutions on your behalf. We can compare coverage alternatives and select the most appropriate option to solve your insurance coverage needs.

As insurance professionals we can design the right insurance program on your behalf to protect your business against loss. We can help bring you peace of mind in knowing that if a loss occurs, the right insurance protections are in place to indemnify your business and help it recover.

Try Risk Reinsurance Holdings today and leverage our expertise and market access to solve your insurance needs. You may follow the link hereunder to complete a questionnaire and get the business insurance quoting process underway.