Working Out Your Business Insurance Budget

One of the key factors you’ll need to have in place when you start your small business is a budget for your business insurance. California startups need to understand what their exposure to risk is, and be ready to purchase the right amount of insurance to financially protect against this. While carrying out a detailed risk assessment and listing your firm’s projected assets in an inventory will help you understand where risks may lie, budgeting for your insurance may sometimes be a challenge.

However there are some ways to save money on business insurance, which may help you budget for expenses. One of these is to purchase a packaged form of business insurance. One such form is known as Business Owners’ Policy or BOP. Designed for small to mid-sized businesses, this is a combination of standard coverage such as property, liability and often business interruption. While offering a limited amount of insurance coverage, it may well be enough for your startup company although you may also need to arrange coverage some disasters that aren’t included, like flood and earthquake.

Ideally, when planning for their business insurance, California enterprise owners should start when they draw up their business plan. With 25 percent of all firms who close down after a disaster unable to open again (according to research from the Insurance Information Institute (III), it may be wise to have a strategic insurance plan in place early on. Talk to us for more details.