For many small businesses, getting the insurance coverage you need can be a frustrating and potentially expensive process.
Which of the myriad coverages apply to my business?
What does each type of coverage even cover?
What kind of limits will best meet my needs?
Am I paying too much for what my policy covers?
These are all common questions you may find yourself asking as you try to protect your business from liability.
In today's insurance marketplace, finding coverage that is both affordable and applicable can be difficult, especially for businesses that have unique risks.
So, What Do I Do?
One of the best ways to combat these difficulties to become a member of an association relevant to your industry.
Many associations offer their member businesses a variety of advantages, one of which can include liability insurance.
Getting liability insurance through an association offers a number of benefits, both for business owners and for the association itself.
Benefits for Businesses
As the old saying goes, "there is strength in numbers."
By banding together, small businesses improve their financial strength, which in turn provides them with greater negotiation power in the insurance marketplace.
When these businesses are all part of the same industry, it also allows insurance companies to more accurately evaluate risk as a whole, instead of focusing on the microcosm of your individual business.
In addition to seeing the "big picture," liability insurance purchased through an association also spreads the risk across multiple people. The more businesses it is spread over, the less each individual business is accountable for.
Finally, not only is the likelihood of risk shared, but the actual cost can be shared as well. Think of it this way: a common discount practice used by some business is to offer steeper cuts per item when more items are purchased. What may cost $5 per item when 5 are purchased only costs $3 per item when 20 are bought.
This type of combined purchasing power leveraged by an association is what helps keep insurance costs down for small businesses.
Benefits for Associations
By offering member business access to competitive liability insurance options, associations become more attractive to new and potential members, while still appealing to their current membership.
There are also financial benefits for professional associations who offer insurance programs for its members. With another revenue stream outside of dues, you have greater flexibility when allocating funds to support the association's objectives.
Stronger Together
An association-based insurance program benefits all parties involved, from the individual businesses to the association itself. Both are made stronger by the interaction.
If you are an association who does not currently have an insurance program in place for its members, consider beginning one. To learn how, visit our Association Insurance page for more information, or call Veracity Insurance Solutions at (801) 216-8267.
If you are a business looking for insurance, consider joining a professional association. Or, if you are already part of one but they don't offer an insurance program, consider reaching out to the directors or other governing body and encourage them to participate. Feel free to link them to this post.