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News

Critical Aspects That Appertain to Small Business Insurance

When it comes to the cost of small business insurance, the amount you pay will be informed by the exposure unique to your enterprise. Indeed the types of exposure may be similar in description from business to the next but the cost incurred by one business will be different from that in the other because the premiums are different. It is therefore prudent to thoroughly understand why these premiums differ for the different areas of exposure i.e. property, workers’ compensation, liability, time element, automobile and crime.

For property insurance premiums, the various factors that may be considered in determining the rate include building use and occupancy, structure construction, public protection, internal protection e.g. fire escapes and sprinklers, etc. In terms of liability insurance the premium cost is dependent on the business type. For example, manufacturing and hotel business’ premium costs are informed by gross sales while the premium costs for service and contracting businesses are informed by the payroll. Enterprises based on payroll or sales are auditable and it’s possible for such to end up in supplementary or return small business insurance premiums. In the case of companies there are deposit and minimum premium requirements to consider and these sometimes vary. Thus, when shopping around for small business insurance packages these requirements should be factored in accordingly.

Having identified a number of insurance companies that you can deal with, the first thing to do should be to make a background check on each company. Next, you should contact the relevant insurance authority in your area in order to ascertain the status of these companies and how long each of them has been operational there. Your search for the most suitable company to deal with may also require you to search for various review reports as published by various established and reputable rating services. Such reviews will offer detailed insights into the financial and rating positions for each firm on your list. The firm with the most attractive credentials should definitely be your preferred small business insurance provider of choice.

After contacting the insurance firm you have identified and having an agent take you through an assessment of your exposure, you will be in an informed position to purchase a small business insurance cover. If this is the case you will be required to complete some application forms and then pay an amount of money. Your agent should then present you with a ‘binder’ that bears his/her signature. This document will among other details identify you as the insured, show the date on which coverage becomes effective, identify the insurance firm, describe the location and nature of the property being insured, show the cost of the small business insurance cover, describe the liability limits, and any other necessary information. This binder can remain valid for up to 90 days before you are issued with the policy.

It is possible for an insurance cover thus issued to be cancelled by the issuing company. An insurance firm has a 60-day underwriting period within which it should review submitted applications and information, have an inspection carried out if required, and also make a verification of the premium calculation and rating. Your small business insurance cover may be withdrawn within this period but you must be issued with a cancellation notice of not less than ten (10) days. After the 60 days elapse the insurance company can only cancel your cover by giving you the reason for doing so and a 30-day notice. Insurance cover cancellation on account of fraud or premium payment can only be done after a 10-day notice is given. The non-renewal of your small business insurance cover by the concerned firm can only be done if you are given the reason(s) for the action and a notice period of not less than 60 days but not exceeding 120 days.

 

News

Today’s Market Is Conducive to Small Business Growth

Our market today is truly very conducive to small business growth. News articles from different sources herald small business success stories; how simple businesses have grown into giant multi-million corporations. Our current financial and technological infrastructure has made a way for small businesses and companies to find more and more opportunities for growth.

Here are some of the avenues where some companies were able to promote small business growth.

A lot of small companies have made progressive business expansion by taking advantage of the changes and transitions made by other companies. An perfect example of this would be in the food business. A lot of bloated multi-million food and beverage companies are now replacing natural ingredients in their products for artificial and synthetic ones. Although companies like these most definitely benefit from the cheaper cost of production, it is the average consumer that ultimately pays the price. Because of this, more and more consumers are now looking for better and safer alternative options. And this is where the opportunity lies for a lot of new upstart companies. Many of small business have taken advantage of this change and have introduced all-natural and organic products. These companies who have taken the bold leap have since then had an impressive following of consumers.

Another avenue where small companies were able to see a lot of growth was through outsourcing. When one hears the word outsourcing, one immediately thinks of cheap but possible low quality products and services from another supplier – and usually from another country somewhere in the eastern part of the world. However, outsourcing stock, and labor has been one of the most effective means of small business growth. A lot of small companies who couldn’t compete with their bigger counterparts have looked outside for better prices on raw materials and also on labor in some cases. This has provided the companies with some kind of buffer to compete in the already competitive market.

Service related business has also seen a lot of growth the past few years. And most of the opportunities for small business growth is the IT industry. With the emergence of the information age, a lot of companies have taken advantage of the trend and started their own IT business, each catering to different aspects of the IT industry such as software development, hardware development, product support, consultancy, and a may others. In fact, the demand for information technology has been so high the past few years that these companies who’ve invested in the technology has seen tremendous small business growth and are now reaping substantial amounts of revenue.

Speaking of Information Technology, we all know that the Internet is the best source of information in our generation. It is a collection of all sorts of freely accessible data from all over the world. However, there are some people who have tapped into the internet for something much bigger: business. A lot of young business upstarts have actually used the internet to generate a ridiculously huge amount of revenue for their companies. There are online businesses for books, shoes, cars, apparel, just about any item you can think of is available on the internet now, and these small companies have started it all.