15 June 2017

5 great Q&A's about small business insurance on Quora

An insurance broker is your best resource for reliable and up-to-date information about insurance and risk management. But what can you do if your broker is busy and you need information right now? Enter: Quora.

The internet is a great tool for research, discovery and communication, but with so much information out there it can be hard to find comprehensive and reliable answers to our most burning questions – especially when they’re questions about business insurance. This is where Quora comes in: Quora is a question-and-answer site where people post questions that are then answered and edited by others. So far, more than 13 million questions have been posted!

We’ve done some research to bring you 5 of the best questions and answers about small business insurance on Quora to help you out in your moment of need.

What other questions would you like to see answered? Let us know in the comments below, and we’ll answer them for you!

1.    Why does a salon need insurance?

 Answer posted by Mark Griffith, Independent Insurance Agents of NY:

“Because things can, and do go wrong. A customer could slip and fall on product that is on the floor (buy General Liability Insurance), a chemical could burn someone’s scalp (buy Professional Liability Insurance), an employee could trip over a power cord and break an arm (get Workers Compensation) or a machine inadvertently left on overnight could heat up and burn down the building (Tenant’s Liability Coverage…).

While none of these things may never happen to you, and I hope they do not, they do happen often enough to keep insurance agents like me earning a paycheque and supporting our families.”

2.    I am a freelance designer. Should I get liability insurance or legal protection insurance, or both?

Answer posted by Charlotte Hall:

“Most freelancers are in the business of offering consultancy or advice, which means that professional indemnity insurance (PI) is a good place to start. PI will protect you if you make a mistake, or if a client suffers – or claims to suffer – a financial loss as a result of your work, covering legal expenses and compensation you have to pay. So, if you’re a software developer, IT consultant, advertising or design consultant – or something similar – this is a must-have. You may also find that clients insist you have PI – so it could even help you win business (or not lose it!)…”

Read the full answer here.

3.    Business insurance: how do I determine how much liability insurance is needed?

Answer posted by Ethan Andrew Kosmin:

“The amount of liability insurance coverage you need depends on the type of business you are in and the risks associated with it.

For example, a large roofing contractor will need more coverage than a home based consultant. Your business location also is a factor…

The amount of general liability insurance you need might also depend on a contractual obligation. To get certain contracts, large companies will often require larger amount of insurance…

At the end of the day, a good rule of thumb is to ask yourself, ‘What is the largest risk my business faces?’ Then try to attach a monetary amount to a worst case scenario…”

Read the full answer here.

4.    Why do small businesses need insurance?

Answer posted by Jake Cavens, business insurance underwriter:

“Insurance is the best risk aversion tool that small businesses have. Most small companies don’t have a lot of capital so all it takes is one 5–7 figure claim to put them out of business. But with business insurance, you can get that claim covered by paying a premium and still being able to continue on with business.”

Read the full answer here.

5.    Where can I compare business insurance quotes from the top insurance companies?

Answer posted by Craig Anderson, chartered insurance professional:

“I would urge you against trying to compare them yourself. Commercial policies can often differ substantially in their wordings thus the coverage from one carrier to another may be substantially different. If you were to go and get quotes on-line then compare prices (which is usually as far as most people go in their comparison of insurance offerings) you likely are not comparing apples to apples... worse yet, you are likely comparing "unknown food product A" with "unknown food product B" and hoping that the one you pick will be the best one for you. 

If you want to compare policies (which you absolutely should) then you should talk to an independent broker and have them do the work for you.  They will find out what you need, who offers products to fit your needs, negotiate price for you, and give you your options... it will cost you nothing but a couple of telephone calls.  Why do it yourself when you can get an expert for free?”

Need an answer to your questions about insurance? Look through our insurance 101 blog articles or call 1800 240 432 to speak with your local Gallagher branch. 

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