What Do Women Business Owners Want? Credible, Accurate Insurance Advice

According to the 2015 State of Women-Owned Businesses Report, the number of women‐owned firms increased by 74 percent between 1997 and 2015. The majority of new women-owned firms launched in 2014 were owned by minority women.

“Whether launching a new business, growing your business, or competing in the global marketplace, it is essential that women business owners get the right type and amount of coverage,” said Loretta Worters, a vice president with the I.I.I. “Without adequate insurance, a natural catastrophe, employee lawsuit, or even the death of a business partner could destroy what they’ve built,” she warned.

In recognition of Women’s History Month, the I.I.I. recommends the following six strategies to ensure that your business is financially protected:

1. Assess Your Risks: What business property, including inventory and equipment, do you own? Do you have employees? What is the nature of your business? This basic snapshot will help an insurance professional provide recommendations about the type of coverage your business needs.

2. Find the Right Insurance Professional: Most business owners use an insurance broker when shopping for insurance. You’ll want to find one who is familiar with your specific business’s risks. A qualified broker can help collect all the necessary information and paperwork to apply for a policy and compare several options and quotes. Here are some tips for finding the right fit: Finding the Right Insurance Professional for Your Business.

3. Compare Rates: You should generally get business insurance quotes from at least three companies. Try to find policies that offer similar coverage to compare prices.

4. Evaluate Insurers, Policies, and Services: Price is just one consideration when purchasing business insurance. Make sure a potential insurer is reputable and in good financial condition. In addition, review and compare policies in depth. Does one policy have exclusions that another does not? In the case of litigation, does the insurer provide an attorney or reimburse you for an attorney you choose?

5. Lower Your Premiums: Choosing a higher deductible can significantly lower your premiums, and insurers will often lower your rates for implementing programs to minimize losses from fire, theft, and employee and customer injuries. This is particularly important for start-ups with low initial capital.

6. Review Your Risks and Insurance Policies Annually: Talk to your insurance professional before renewing your coverage each year to determine what adjustments should be made to your business insurance policies. If your business is expanding, you have purchased or replaced equipment, or you have started working with vendors internationally, you may have new liabilities that require higher insurance coverage.

Life Insurance is vital to any business—both personal and for the company. Should you die prematurely, an individual life insurance policy can replace your income from the industry and protect your family. Life insurance will care for your business if an owner, partner, or key employee dies.

Another essential coverage is Disability Insurance. More than twice as many people will be disabled during their careers as they will die before they retire. “Income protection for small business owners is critical for the long-term security of the owner and the company if they cannot work due to an injury or illness,” said Worters.

Source: Insurance Information Institute