The COVID-19 pandemic has sent shockwaves disrupting the business environment in ways few could imagine. Many businesses have gone down with some struggling to come back as social distancing policies and fears continue to affect the landscape. Those who have stayed afloat, be it operating at reduced levels, are increasingly searching for new innovative ways to cut down on businesses’ costs. Cutting back on insurance is no longer an option but a necessity that most businesses are pursuing.
While saving money on business insurance is a sure way of staying afloat and realizing some income on the side, it should be followed with caution. Insurance coverage goes a long way in protecting businesses from unforeseen risks and events. Cutting insurance completely amounts to leaving a business naked and vulnerable to unforeseen incidences.
Amid the 2024 chaos fuelled by COVID-19, businesses need to carry out in-depth due diligence in order to enjoy the full benefits of insurance coverage while keeping costs low. The following are some of the things that businesses can do to realize the full benefits of insurance products.
Do In-Depth Analysis before Buying
In times of crisis like the one fuelled by COVID-19, insurance buying cannot be rushed. Doing shopping around and carrying out an in-depth analysis of all insurance products on offer can guarantee coverage that is not only affordable but effective.
Carrying out in-depth analysis reduces the risk of signing up on insurance products that cost an arm and a leg for no reason. In this case, a business can invest in some external expertise to search for cost-effective coverage. If investing in an insurance expert is not possible, then the Small Business Administration formal webpage would come in handy in providing the much-needed information for securing a cost-effective insurance policy.
Have You Been Overpaying?
While looking for ways to save on operational costs, now would also be the best time to ascertain whether you have been overpaying on insurance premiums. If your business has paid the entire premium and nearing the end of an insurance coverage period, you could potentially be owed some money by the insurance company?
For businesses whose insurance premiums are determined by the square footage of a business, there may be savings worth pursuing in case the crisis has led to the shutdown or reduction of operating space. By reducing operating space, you can significantly reduce premiums owed, conversely generate some savings.
In addition, this would also be the best time to try and renegade with an insurance company when it comes to coverage cost given the impact of the COVID-19 pandemic. With businesses struggling to stay afloat amid a challenging business environment, an insurance company could lower the insurance cost, all in hanging on to a customer.
Don’t Cut Insurance Benefits
All crisis ends. Similarly, now would not be the best time to cut insurance benefits completely, especially those touching on workers, customers, or communities at large. Businesses thrive based on how they treat employees and communities in times of such a crisis
Therefore, cutting benefits amid the public health crisis would only dent a business reputation and business image once the subsides crisis. Conversely, this would be the best time to review COVID-19 insurance information, find the right provider, and make payments to protect a business reputation.
Some businesses have opted to take a small business loan to cater to employees’ needs amid the pandemic. Similarly, any business can opt for this option as the U.S federal government is offering a number of loan programs for businesses that promise not to permanently lay-off staffers.
The Small Business Administration is offering business loans to a tune of $5 million. Eligible businesses for the loans are those that operate for a profit as well as those engaged or do business in U.S territory.
According to CFAinsure, one may be required to have life insurance coverage for an SBA loan to be processed. A Whole term life insurance or Term Life insurance would be an added advantage to securing an SBA loan amid the current crisis.
Amid the challenging business environment triggered by COVID-19, business owners ought to consider a number of things while taking business insurance policies. When choosing property insurance, business liability, or automobile insurance, below are some of the things to do to end for enhanced coverage at affordable rates.
Compare Multiple Quotes
It is important to compare multiple quotes from reputable carriers and independent agents if one is to end up with the best business insurance cover. You can get business insurance quotes online or by visiting insurance companies and negotiating in person. It is also important to talk to other business owners to see which policies they have taken and what they are paying for the same.
While policies from different companies might have the same name, they may not have the same coverage. Therefore it is important to compare the finer details to select one that is highly suited for the business depending on what is on offer.
Talk To an Independent Insurance Agent
The insurance landscape has changed significantly in the aftermath of the COVID-19 chaos. Likewise, talking to an independent insurance agent would go a long way in helping any business owner get the best and affordable business insurance cover.
An independent agent would be able to analyze the underlying business without prejudice and provide valuable insight into the best cover that would offer sufficient protection based on underlying needs. Unlike talking to a company insurance agent, an independent agent would offer choices. In addition, some do write basic business policies all the way to major corporations.
The fact that independent agents have no exclusive relationship with insurance companies means they can offer a wide range of products from multiple companies. Likewise, they are always objective in providing guidance on a variety of products, coverage, and prices.
Insurance coverage is crucial to any business’s survival, given the layer of protection offered to cover unforeseen incidences. However, amid the COVID-19 pandemic, it is essential to ensure that a business is getting the full benefits of a given policy and not overpaying on premiums.