For the women who successfully made strides in the business world over the last few decades, corporate insurance is essential to protect their hard-earned assets. In the last 40 years, the number of women-owned small businesses in the U.S. grew from five percent to more than 30 percent.

They generate trillions of dollars in revenue and employ millions of people. Minority women own many of the firms. Whether launching a business, growing a business, or competing in the worldwide market, women must have the correct type and amount of insurance coverage.

Strategies for Financial Protection

Without proper insurance, the death of a partner, an employee lawsuit, or a natural disaster has the potential to destroy what they built. The following strategies ensure a business is protected financially.

  • Assess risks
  • Find the right insurance broker
  • Compare rates
  • Evaluate insurers, services, and policies
  • Lower premiums
  • Annually review risks and insurance policies

Assessing Risks

Inventory and equipment, number of employees, and the nature of the business provide a basic snapshot that helps insurance professionals provide recommendations for the type of coverage a business needs.

Finding the Right Insurance Broker

Most businesses enlist the help of an insurance broker. Choose one familiar with the specific risks of your business. A qualified broker helps collect the necessary paperwork and information for a policy application and compares several quotes and options.

Evaluating Insurers, Rates, Services, and Policies

Sources for finding the right commercial insurance broker include asking trusted advisors for recommendations, contacting trade associations in the area, tapping online networks, and searching the internet. Evaluate the broker’s experience, education and certification, licensing, and personality.

As a rule, get corporate insurance quotes from at least three companies. Look for policies offering similar coverage to compare prices. When purchasing corporate insurance, price is one of many considerations. Make sure it is a reputable company in good financial condition. Do an in-depth review and comparison of policies. Find out if a policy has exclusions that others do not. Ask if the insurer provides an attorney or reimburses you for one you choose in case of litigation.

Lowering Premiums

The choice of a higher deductible typically significantly lowers premiums, and insurers often lower rates for putting programs that minimize customer injuries, theft, and fire into place. This option is particularly beneficial for start-ups low on initial capital.

Annual Review of Policies

Talk to your insurance broker before renewing your coverage each year. Determine adjustments needed for your insurance policies. Higher insurance coverage is necessary when you work with international vendors, replace or purchase new equipment, or expand your business.

Don’t Disregard These Coverages

Life insurance is critical to any business for both the company and personally. If a key employee, partner, or owner dies, life insurance takes care of the business and replaces income to protect your family.

Disability insurance is another critical coverage. The number of people disabled during their careers is over twice that of people who die before retiring. Small business owners need income protection for long-term security if they cannot work because of an illness or injury.