Four Important Tips On Managing Your Small Business Insurance Cost In Nigeria
Small business insurance cost is really something you should consider. small business insurance is a necessity. Unfortunately, it is not been given the required attention. When you become the owner of a small business, you have to put up with an array of responsibilities. You have to respond to your customers, man an active website, and take care of overhead bills, in fact, there so many things to be done.
The truth remains that most people in Nigeria that operate small businesses don’t have insurance. The trend is changing though. People are becoming more enlightened on insurance generally.
The state of insurance generally sucks in Nigeria. It is full of shit.
There is light at the end of the tunnel though. There have been serious breakthroughs in health insurance. Hopefully, others will follow suit.
Business insurance might probably be one of the items on that long list. It should be noted that it is a very essential one. It is rational to want to ensure that you have the necessary coverage for your company. It is in line with that that these factors are given to enable you make important decisions about business insurance while having your bank account in mind.
It is simply by managing your small business insurance cost.
Managing your small business insurance cost
You are required to Bundle Your Coverage
Bundling your coverage is essential to managing your small business insurance cost anywhere in the world.
It involves getting all your policies and protection from the same insurance company. This is in contrast to getting it from different insurers.
When all business coverage is placed under one policy and with one insurer which is called “Bundling” premium cost will be reduced and as an added advantage, can make your insurance renewals management less time-consuming.
2. Evaluate Your Deductibles regularly
Another factor to be considered in managing your small business insurance cost is Deductibles. This refers to the amount of money paid in the event of a claim before your insurance is considered for contribution.
When deductibles are increased, premiums may be reduced and there will be more money in your pocket every month. Worthy of note however, is that while higher deductible may be attractive because it saves more money on reduced premiums, you have to ensure that you think about how much money you can spare for your deductibles coverage in the event of unforeseen contingencies.
3. Meet with Your Agent Every Year to Review Coverage
For you to effectively manage your small business insurance cost, you have to regularly review your coverage.
Businesses like every other thing change and evolve with time. New risk exposures may suddenly spring up and will need special insurance.
Also read: all you need to know about health insurance in Nigeria
For instance, some small business owners didn’t have to worry about internet security few years ago. However, a study cited by the US House of Representatives Small Business subcommittee on Health and Technology in 2013 revealed that 20% of all cyber attacks concentrate their attacks on businesses with less than 250 workers and 60% of victims of cyber crime close down their businesses within 6months.
This new trend might necessitate to businesses considering data compromise protection.
That was in US with a high level of advancement. Imagine what can happen in Nigeria with less advancement.
Think of each renewal of your coverage as an annual check-up. Make sure you utilize fully the business insurance information provided by your insurance agent.
The agent is the professional and has a better understanding of the current risk environment that small businesses thrive and can assist you in making decisions to better take care of your businesses and personal risk. This is why you need to meet with him to review your coverage(s).
4. Use Stronger Risk Management in Your Daily Operations
For you to save more money by managing your small business insurance cost in Nigeria, being proactive is the key.
Undertake measures to alleviate your risk. The possibility for fire outbreak or any kind of injury to customers can make a huge difference. There are so many well known and respected sites that can provide owners of small businesses advice on risk management and the process of running a small business.
There is no doubt that the implementation of sound risk management practices in your small business can go a long way in avoiding preventable losses.
If you don’t own a small business now, may tomorrow you will own one. At that time you will do well to remember that insuring your business is very essential. Just as you can insure your vehicle to meet up your financial needs in the event that you get disabled, you should also look up business insurance options.