Insurance For Small & Medium Business

Insurance For Small & Medium Business

If you want to start a business, you have a lot of to-dos on your list. Entrepreneurs not only have to find the right financing, legal form and the right location. You also need to be clear about which company insurance policies are fundamentally necessary and which ones best suit the company.

Individually relevant factors are constantly changing. If you don’t stay on the ball and don’t regularly check and reassess your corporate-owned life insurance cover, you will quickly find yourself left out in the rain in the event of a claim.

Tips & tricks when applying for business insurance

  • First of all, analyze which risks could actually threaten you and evaluate them.
  • Then consider whether there are other ways to avert risks besides taking out insurance.
  • Give your insurer the opportunity to inspect the object to be insured on site and note this in the application “as inspected”.
  • Note any special arrangements in the application. These must also appear in the policy text.
  • In more complicated cases, request the involvement of a specialist for the relevant division.
  • Always get multiple offers.
  • Find out exactly what is covered and how premiums are calculated for each class of insurance. Do not under-insure, but also do not over-insure.
  • Pay attention to any risk exclusions and have them explained to you. Try to change them in your favor.
  • Agree on the shortest possible terms for the insurance contract. It is a matter of negotiation to still get the loyalty discount associated with a longer term. In the event of an earlier cancellation, however, this must be paid back to the insurance company.
  • Consider whether you want to/can bear a more or less small risk yourself.
  • Find out exactly how to behave in the event of damage.
  • Check from time to time whether your insurance still corresponds to the risk.

corporate-owned life insurance

Recognize and avert risks

It does not make sense to insure all risks. Evaluate the risks in terms of impact and their probability of occurrence.

A catastrophe risk can mean the loss of existence for your company. With a major risk, you may not be able to achieve your business goals, but your business will survive. With a medium risk, your goals are at risk when the damage occurs. Minor damage occurs with a small risk, your corporate goals remain unaffected.

Avoid risks by using a different manufacturing process or discontinuing dangerous products. With appropriate fire protection, external storage or data backup, you reduce possible risks. You can pass on a risk by taking out insurance.