Buying Business Insurance During COVID-19
Things are different now. Even as the world preps to possibly recover from COVID-19, the aftermath of the pandemic will remain evident for months and perhaps years. There are newer challenges and concerns for business owners. And these “challenges” and “concerns” are expected to greatly influence how business owners shop for insurance policies.
For instance, standard business interruption policies do not cover events like a pandemic. With coronavirus as an example, business owners should purchase customized plans – with adequate extensions – that do cover these low-probability but highly-disruptive events.
Even when buying liability insurance policies, one now needs to do more calculations. With so many businesses in a financially-difficult position during this downturn, not everyone can spare the same sum on premiums that they once did pre-COVID-19.
So, while the process was a challenge in itself, buying business insurance policies has gotten more complex during this pandemic.
But that said, given just how important insurance policies are in the growth, sustainability, and protection of your business, don’t avoid investing in them altogether. Adapt to this newer time to make better decisions that are based on the ‘now’.
Here are 5 dos and don’ts of buying business insurance during (and after) COVID-19:
1) Don’t rush to cut insurance costs
This is another way to say that business insurance policies aren’t your cost-cutting avenues. Depending on your business type, industry, and risks exposures, they might be essential.
So, even when your business is facing difficulties, don’t rush to pull the plug on your insurance policies – or on your plans to buy insurance. Don’t put off your plans to renew your business insurance.
2) Do evaluate your financial capabilities
With the above point made, this doesn’t mean you completely disregard your existing financial condition and keep spending on business insurance like nothing has happened.
Evaluate your financial capabilities to understand your new requirements and limitations. Get together with your accountant and finance team to understand your updated financial condition and then work accordingly.
The key thing to remember here is that business insurance policies aren’t optional; the likes of business interrupt insurance COVID 19 are important. But at the same time, it shouldn’t cost you too much that hinders your operations.
3) Don’t be over-cautious (or careless)
Some business owners invest too much in policies and extensions that they don’t really need. They do this just because they are over-cautious.
At the other side of the pole, there are also those who spend too little to get the needed coverage. They are just careless with the decision.
You don’t want to be either of them. You want to strike a perfect balance wherein you purchase just the right types of business insurance policies with adequate coverage.
4) Do consult an insurance broker
This is the perfect time to consult an insurance broker instead of opting for DIY measures. These experts, well aware of the existing market conditions, can provide you insights into what kind of business insurance you should buy.
Moreover, they can assist you to find low-premium insurance plans that offer wider coverage. So, a good insurance broker can play a key role in budgeting and cost-saving in buying insurance.
Do some research and find an insurance broker who is licensed and has experience of working with business owners like yourself.
5) Don’t buy without customizing your insurance plan
During this crisis, many people were left asking “does business insurance cover covid” and about business interruption insurance coronavirus.
Similarly, when crisis hits and the business is in a vulnerable position, many business owners panic and often end up with losses. Interestingly, such instances could be avoided if you only customize your insurance plans based on your unique needs and risk exposures.
Customizing your business insurance plan not only ensures optimum benefits but also bring cost-saving opportunities.
So, especially now in these economically challenging times when decision-making around business insurance should be informed and educated, do customize your business insurance.
Don’t Overthink…
This is worth mention.
Many business owners often feel anxious when making such a big financial decision. In the current situation, this makes sense.
Do think and do take your time. But don’t fall for ‘analysis paralyses’. Establish your needs, take hands of a trusted online insurance broker, and buy the right business insurance policies.
