When you establish a new business, there are many things that you need to work on from getting all licenses intact to attracting a sufficiently large number of customers for marine insurance and managing your cash flow. You must also cover your company against the most common types of risks. In this way, you will protect your investment and the operations of the business as a whole. Get some essential advice on how to do this correctly.
Three Types of Protection
When you purchase a marine insurance package, you have to ensure that it has the following covers present in it. They are fundamental for any type of company regardless of its industry or size.
- Asset coverage – You must protect your property from buildings, machines and portable equipment to finished goods against all kinds of perils. It is best if you get the assets covered for their replacement cost. You should also be able to add new ones to the policy.
- Liability coverage – There are two main types of liability covers that a company must possess. The first one is public liability coverage which helps you to compensate members of the public for bodily injury and property damage resulting from the actions of your company or on its premises. The second one is product liability insurance. It protects you financially from claims for bodily injury and property damage resulting from the use of your products. If you run a service business, you need to get professional indemnity insurance designed to help you pay compensation for losses resulting from the use of your service.
- Business income coverage – This type of insurance is designed to protect your revenue in case you have to interrupt your operations due to a peril. You will get adequate compensation for public liability insurance cover your fixed expenses and financial assistance with restoring your operations.
Keeping Cost Down
Comprehensive small business insurance which offers adequate protection is certainly not cheap, but this does not mean that you cannot get an affordable policy. The best way to keep the cost of insurance down in the long term as well as in the short one is to take effective measures for protecting your assets and reducing the risk of liability claims. Comparison shopping is essential for getting the best product at the best price.
You should also find out whether you are entitled to different types of discounts. You may be able to secure a lower premium if you have insurance with the same company as a private person. Membership in a professional association can also help your company to save on insurance. Do not miss to check the special offers.