According to an article published in The Hartford, your small business is likely to lay a claim within the next ten years.
The most important question you have to ask yourself is; why exactly do I need insurance and how do I know if an insurance company is good or not?
If you are unsure, we will help you recognize the makings of a well-suited insurance company, and you will find it easier to choose which one to pick.
The Importance of Business Insurance
You have probably asked yourself “why does my accounting businesses need insurance anyway?”
The answer is quite simple; accidents can happen at any time and you need to be prepared for those unexpected oopsies.
This helps pay for damages you would be forced to cover out of your own pocket. (1) (2)
The biggest reasons your accounting business needs insurance.
- It saves you time, money and stress
- Guards your accounting business from damages
- Can provide benefits to your employees in the future
If that’s not enough We have lined six more out as such:
Having Business Insurance Builds Credibility
There are more benefits to business insurance than simply protecting your business. The ability to comply with the right policies will put your potential clients at ease.
This will serve as a good indicator that shows that you take dealing with risks seriously. You will also have the ability to reassure both your clients and workforce that you will give the best protection.
Business Insurance Can Help Recruit and Retain Employees
When your accounting business reaches a point where you might want to enlist a small workforce, keep the following in mind. People need more than just a salary while looking for work.
They also look for companies that offer benefits, such as life and health cover. There are many companies who miss out on getting the best employees because of this.
Helpful with Legal Action
Every company can get legal action taken against them and as such face legal fees. Business insurance will be able to help you cover the costs should this happen.
Protects your livelihood
As the big boss of your operations, you have to ensure that the business is in top shape. But then again what happens if you are unable to do this because of a health issue such as a heart attack, or you could be injured in a serious accident or some other luckless state of affairs that takes you out of the picture?
Having life and disability insurance coverage for your accounting business provides payments to protect you from the loss of income.
Qualities of a Good Insurance Company
Deciding on insurance for your accounting company is a major decision, so don’t take it lightly. The big question remains; how do you know whether an insurance company is good or not?
There is a whole bunch of criteria that goes into picking the most suitable insurer for your accounting business. We have listed just a few of these aspects that you should look at when making your decision.
Credibility
Credibility is a major attribute to what goes into making a reputable insurance company. A decent insurance company has a track record of its commitment to its clientele. Ask:
- Does the insurance company have a good status among its competitors?
- Do they have partners and clients who stay loyal to them?
- How long have they been in business for and do they make good on their commitments?
These are some questions you need to look into. (3)
Financially Stable
The most important reason for buying business insurance is to get peace of mind. You want to be sure that should fate deal you a bad hand that the insurance company will be there to cover you. This is important while you focus on getting back in business as soon as possible.
Having a look at the financial condition of the insurance company is tremendously important. Make certain that they pay out claims on time and as promised and that they have a solid claim record.
Customer service
A good insurer should have an extensive network and agreement with multiple service providers. Also, it would be ideal that they offer multilingual helplines and be available 24/7.
Here they should also be able to provide an appropriate, punctual and truthful response to the needs and complaints of their clients.
Product quality
The best insurance companies frequently uphold importance to clients, making sure that their products are reasonable. They develop their products to cater for the lifestyle changes of their customers.
Ask:
- Will they give your accounting business flexible options that allows you to pick and choose what you need?
- What and how much do they cover in their policy?
- Will the policy ensure that your needs are met?
- Is automatic renewal possible?
Premium Affordability
A sound insurance company will always make certain that your business gets great value for your hard earned cash.
Hear about whether they have a diverse price structure for every type of business whether you are a small entity or a big corporation. Some good questions to ask would be:
- Do they offer discounts for a small enterprise?
- Do they offer cover to your employee’s families?
- Do their premiums increase as your business grows, and by how much?
Transparency
Delving into and choosing which insurance company would be most suitable for you and your accounting business can be an exceptionally challenging procedure. To keep you from the hassle, it is essential that they remain as clear as possible in their communication.
A good insurance company will be able to explain their benefits openly. They will also use easy-to-understand lingo and definitions while keeping their customers up-to-date with any premium price increases.
In short, a good insurance company will have the information you need to assess their products.
They will make sure that this is explained clearly, which will allow you to make easy comparisons between companies.
Conclusion
Let’s be honest, you don’t have some magic crystal ball hiding away so that you can predict what could happen to your business in the future. In an ideal world, things like crime, injuries or legal claims don’t exist.
However, in reality no one can guarantee that they won’t happen. For that reason alone, it’s best to be insured. When choosing a good insurance company for your accounting business, you will be able to relax and focus on having a business that takes you forward.
