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Shopping for business insurance plans – First few steps to follow

By February 25, 2022April 13th, 2022No Comments

When you own a tech start-up or SMB, it means taking care of a vast range of aspects. The tasks include shopping a relevant insurance plan that suits the objectives of your business, from a long-term perspective. You need to consider certain points and take distinct steps on this matter. 

Gather information about various insurance policies

The basic step is doing research. You can begin by digging through the internet. Check out the various blogs and forums. There are numerous varieties of business insurance policies available for small companies and start-ups. 

Assessing the risk

It is not possible to purchase an insurance policy without a clear assessment of the risk you have. Study the incidence of risk within the framework of your business. Take note of the characteristics and perform the required mathematical calculations, before finally deciding to buy the policy.

It is crucial to consult with a reputed broker

Keep in mind to work with an insurance broker that ahs good reputation in the market. The broker usually has a wide range of insurance policies for its customers. You will not experience any shortage of choices as far insurance for small businesses are concerned. 

Availing the best prices you are willing to afford

It is extremely important to avail the price that optimally benefits your business objectives. You need to take into account a few distinct essential points on this matter. Some of the things you can consider are:

  • The kind of insurance your tech start-up or small business requires
  • The amount of coverage you are looking for
  • If the scheme is concerned with benefits of buying a multi-policy insurance, then what are the specific benefits
  • The associated risks involved with the purchase
  • The location of your business/office/manufacturing plant/factory 
  • The plan of paying the premium amount complying with the policy regulations 

Performing a comparative analysis

You can never overlook the importance of performing a comparative analysis of various insurance policies. Different polices have some unique features. You should be aware of the particular features. Patiently go through the offers and study the benefits your business or start-up can avail. 

Working with an expert is wise

It is a good idea to work with a professional who has expertise in assessing the pros and cons of business insurance policies. The expert can provide you relevant insights. You can use the details to purchase a suitable policy for your company. It is better to have more brains on the discussion table. 

The ‘best deal’ is not always ‘the best’

Keep in mind that insurance can be said to fall under the category of welfare of your employees and company. So, the ‘best deal’ in terms of lowest or very affordable price may not work in your favor in many situations. You need to exhibit more wisdom to explore the various insurance policies available in the competitive market. Rushing through the policy documents is not an answer.

Check out the Financial Rating

It is very essential to check out the Financial Rating of the insurance carrier, before you decide to buy its policy. Concerned authorities give ratings to insurance policies, judging their performance and overall effectiveness. It is a helpful scale that you can use for shopping the policy.

Read the customer reviews

You need to go through the customer reviews. Do not overlook the reviews that the current or previous customers of the insurance policy have given. Skipping the more detailed reviews can be a mistake. The reviews give you fair ideas about the dynamics of the policy.

Types of insurance products offered

When you select a particular insurer, the next step is checking the extensive list of insurance products it offers to small businesses, including tech start-ups. The website often has the relevant details. It is also necessary to ask the insurer questions on this matter.

Considering the terms of payment

It is obvious that it is never a good step to buy a policy without knowing the terms of payment. There are policies that require small business to pay the premium amount annually. On the other hand, there can be policies that have terms requiring quarterly payment of premium.

Reading the policy document

By now, you must have got a clear idea that one of the most important things to do is to thoroughly read the policy document of the insurance. Check out the clauses and conditions related to those clauses before purchasing the policy

Know about the applicability of the insurance

You also need to have clear ideas regarding the overall applicability of the insurance policy. The document of the policy will have the details. Do not miss the features. Move forward with your intention to buy the policy only when you are sure about its applicability.

Get details about exclusions

Any insurance policy also has a list of exclusions. In simple words, exclusions are cases in which the insurance is not applicable. It is crucial to gather information about the exclusions mentioned in the document of the insurance policy. It also helps you to assess the risks.

The purchasing process should be easy

Yet another point to keep in mind is the purchasing process of the insurance policy should be easy. You must get the required support from the insurer in this context. It should not take much time to buy the policy. The same applies while renewing the policy

Check out provisions discounts, if any

There can be some provisions within the framework of the insurance policy that let you avail lucrative discounts on premium payments. Enquire such details from the insurer. The information helps in ascertaining the budget.

Plan ahead

The focus should be to plan ahead to get a hold of the most suitable insurance policy for your small business or tech start-up. Speak with a reliable insurance broker like PlanCover that has certification from IRDAI. The broker has expertise in the corporate insurance sector in India. Gather as many details as possible. Use the insights as foundation to buy the policy

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