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Previously, the business insurance market catered to the large corporations and enterprise companies. The commercial insurance policies were larger packages that allowed for plenty of cost savings. However, the are new developments in the insurance industry. As growth has stagnated for quite a while, many insurance providers are finding opportunities with small business owners. If you are an owner, you should take note of these small business insurance trends that could help protect your business at lower costs.
Transparent & Flexible Options
More than ever, small businesses are getting increasing choices for their policies. The insurance carriers are giving owners the tools and data to make custom packages. In these types of insurance deals, you simply enter all your company information, including operational activities, locations, industry, etc. Then, the tools give you a break down of the types of small business insurance you company is eligible for. The added transparency and options gives you the ability to lower costs and get the best protection for your business.
Leaders Are Fully Accountable
A new development in insurance, owners are experienced litigation as managers, not just owners who need a business license. Employees, partners and vendors are suing companies for claims exceeding $10M. In response, you can buy a management liability policy. This will cover your risk of making bad decisions or negligently causing losses to stake holders. Of course, this type of policy may already be covered in your insurance plan. Nonetheless, it is worth looking into for yourself or any management team currently in place.
Increased Customer / Client Protection
As the digital industries continue to thrive, many more tech startups need policies that cover their clients or customers. If your small business owns a software platform, you might want to consider professional liability insurance that will cover the costs of risks or liabilities from causing losses to clients. These events are becoming more common as companies offer professional advice, data loss or other service related occurrences. Surely, a good O&E policy would help mitigate these increasingly common risks.
Buying Into Small Business Cyber Insurance
Especially in the past year, insurance companies have seen an uptick in cyber liability insurance for small businesses. While your business might be taking all the precautionary IT security practices, the relentless amount of attacks are driving owners to buy coverage against it. At the right price, you should consider taking out an additional cyber coverage protection against any cybercrime or IT security threats to your business and it’s customers.
Popularity of Business Owners Policies Rises
On another note, the growing economy in the US has lead to new startups and entrepreneurial ventures. With the lowering health care costs and incoming tax reform, small businesses are expected to create much of the new opportunities in the insurance sector. Now is a great time to shop around. If your business has a lower level of risk, insurance companies may work harder to extend coverage with additional policies, types of liability insurance benefits, enhancements and features. Currently, it’s a great time to be in the BOP market.
These trends show that small business insurance is set to have a solid year ahead. There is a healthy amount of competition in the market, leading to lower pricing, flexible coverage and better bundles for business owners. As the digital industries and overall economies continue to grow, we should continue to see the emphasis on small businesses, offering better professional liability policies, GOP packages and general liability protection too.
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