You might be thinking, “What is a company focused on credit debt relief doing writing about National Insurance Awareness Day?” Well, maybe you aren’t wondering. But we have our reasons! On this June 28th Insurance Awareness Day, the idea of what to do when you discover your small business insurance coverage isn’t what you thought it was is what got our attention. Where will that extra money come from?
Most of the time, the easiest way to generate additional income is to lower monthly debt commitments for your business. While we’ve written extensively about our new Budget and Debt Snowball Calculators for personal debt relief use, here are some steps for preparing for not only Insurance Awareness Day, but also just for having your business finances in order should additional insurance be needed.
Step 1: Talk with Your Insurance Agent
From AmTrust Financial: “Set up time to sit down with your insurance agent and review your policies to help make sure your insurance coverage is still appropriate for your small business. An in-depth review can help uncover gaps in your small business insurance coverage, or ensure that you have adequate coverage limits. Have you hired new staff? Have you added a new product or service? These are examples of how changes in your business could require a change to your policies.”
Golden Financial Services is the secondary step in this process, once you’ve spoken with your advisor and realize you’ll need more insurance. GoldenFS can then consult with you on finances, helping you reorganize as a way to make room for more insurance.
Step 2: Review Insurance Types for Full Coverage
Sure, auto insurance comes to mind first, then property insurance, but don’t forget about these two other very important types of insurance, via PaySimple:
- Liability:Insures against injuries sustained at your business location, or by using your products and services.
- Business Interruption: Insurance that replaces lost revenue in the event of natural or catastrophic disaster such as fire or wind damage. (Note: a recent survey found that two thirds of small businesses do not have business interruption insurance, even though about 25% of businesses do not reopen following a major disaster.)
Stick around on that article for the classic annoying insurance salesman scene from Groundhog Day!
Step 3: Check Out Competitors for Better Rates
National Today gives a simple explanation of why this is important (and also a very high level but interesting history on insurance: “Insurance shopping does not evoke the fun had by shoe or car shopping, but if you’re always on the hunt for the best deal, comparing rates could save you big bucks – sometimes even 15 percent or more, or so we’ve heard. Knowing your options gives you the most power and the best chance to save money.”
In addition to shopping for better rates, also ask your current insurance provider about added features, services, or other types of coverage that might benefit your business. This should give you a better idea of how much additional funding you might need.
While no one really knows why this is a holiday, at least now you know where you stand, and you can rest easy at night knowing you are fully covered…while also not pondering why Insurance Awareness Day is a thing.For more help from Golden Financial Services, check out the rest of the blog!