One instrument you should never go without if you operate a technology business is business insurance or liability insurance. The cost to pay for business insurance is nothing compared to the benefits you get when, god forbid, your business is slapped with a lawsuit or disasters beyond your control.
Here are some tips on getting business insurance for your technology business.
1. Determine how much premium is right relative to the kind of technology service or product you sell. To do this, you might want to ask around other business owners with the same type of product or service you provide regarding their experience. You want to get an idea of what possible lawsuits or disasters they faced in the past. You might even ask them directly how much premium is right for your business.
2. Decide whether you want separate insurances for criminal insurance, product insurance, general insurance, key person insurance, etc. You can also opt for a bundled insurance or Business Owner’s Policy. This type of insurance bundles property and liability insurances together, although the coverage for liability is often low.
Remember that you are liable to your customers in case of damage, alleged or proven, to their properties, life, or business caused by your product or service. You need product liability insurance if you sell technology products like micro ships, or you need malpractice insurance if you provide technology consulting services.
3. Consult a licensed insurance broker about the average cost of company liability awarded to a plaintiff in your state. If your state is notorious in awarding big damage payments to plaintiffs, then you might face a possible high premium or you might want to get insurance to all possible risks to your technology business.
4. Now that you have a ballpark idea of the insurance premium and what kind of insurances you need, look for a provider. Visit your company’s bank if it has insurance products to sell to you, or ask them for advice about insurance companies in your area. You can also do a quick search online for insurance companies in your area.
5. Compare insurance companies that have the best service and insurance products you need.
Here are some specific points to look for when comparing insurance companies:
An insurance company with wide insurance product offering is at a better position to offer you a customized solution and policy package for your needs.
- Competitive rates
Compare rates from several companies: some offer premium savings if you have safety and loss mitigation training for your employees. Check for coverage, limits, deductibles, and exclusions.
- Company stability
For obvious reason, you don’t want your insurance company to go down or deny you coverage when you need it due to bankruptcy. Go for trusted names in the business.
- Payment flexibility
You want an insurance company that gives you the widest option to check and pay for your outstanding insurance premium.
- Quick and accessible claims service
Your insurance company needs to be there when you need it. There are those with 24/7 claims officer; it’s wise to get these companies.
- Customer support
You want an insurance company that provides 24/7 personal and phone customer support for whatever inquiries you might have.