How can I get affordable business income insurance?
What is business income insurance?
Income insurance for small businesses is used to pay for the operating costs of a business in case of a shutdown. For example, if a business has to temporarily close its doors due to a fire, income insurance for small businesses will pay for its:
· ? ? ? ? Lost revenue
· ? ? ? ? Day-to-day operating expenses
· ? ? ? ? Monthly payments (mortgages, leases)
· ? ? ? ? Taxes
· ? ? ? ? Relocation costs if the business is temporarily moved elsewhere
· ? ? ? ? Payroll
While pandemics such as COVID-19 are largely uninsurable, income insurance for small businesses can help keep them safe in case of physical damage or loss of property. They can also ensure that there is no long-term loss of business resulting from a temporary shutdown, which would have a negative impact on a business for much longer than the shutdown lasted.
It’s easy to see that business income insurance is invaluable and may save a business from permanent closure or bankruptcy in case of a catastrophe. However, your next question probably is…
Where do I get business income insurance?
Income insurance for small businesses is usually quite easy to get as part of a business owner’s policy. The business owner’s policy incorporates three things:
· ? ? ? ? Income insurance for small businesses forced into temporary shutdown.
· ? ? ? ? Commercial property insurance in case there are damages to property (e.g fires, floods, theft).
· ? ? ? ? General liability insurance in case of loss of business due to copyright infringement, reputational harm or injury.
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How to get affordable income insurance for small businesses?
Income insurance for small businesses is always cheaper as part of a business owner’s policy, so ideally you should buy it through that for the discount and additional coverage for property.
Generally, when shopping for income insurance for small businesses, here are the factors affecting your package:
· ? ? ? ? Your business’s classification
· ? ? ? ? Your location
· ? ? ? ? Your revenue
· ? ? ? ? Your previous claims
Here’s how you can make income insurance for small businesses even more affordable:
1. ? Combine your policies
If you buy income insurance for small businesses as part of a bundle, as in a business owner’s policy, it’ll be cheaper. You may also get a discount if you buy it from the same company as your auto or home insurance.
2. ? Risk management
Insurance providers charge more for businesses they see as high-risk. To cut down on such surcharges and make income insurance for small businesses more affordable, emphasize the safety of your workplace and the clarity of communication among staff and with clients.
3. ? Customize your policies
Through risk management, you can also cut your number of claims and choose cost-saving options on your policies. Discuss with your agent how you can best minimize your risks while still having adequate coverage, and communicate what your expectations and intentions are.
For example, if there is property loss, would you want its cash value or its replacement value? This will help you and your agent decide which areas can be customized to save on costs while safeguarding your business.