Running a business, even a small one, always sows anxiety to its owner. “What if they rob me?”, “What if my office floods?”, “What if something happened to me?” – these are typical questions entrepreneurs ask themselves. How to sleep peacefully? The answer is business insurance. Check how well to conclude a small business insurance contract.
Do I run a small business?
How to define a small enterprise? Is it limited to sole proprietorships? If we employ 10 people, are we no longer reaching for insurance offers for small businesses?
The Act on the freedom of economic activity says that:
The term “micro-entrepreneur” applies to a person who in at least one of the last two financial years employed up to 10 employees on average per year and achieved an annual net turnover or total assets of the balance sheet made at the end of one year did not exceed the equivalent of EUR 2 million in PLN.
According to the same act:
… a “small entrepreneur” is a person who (similarly as in the case of micro-entrepreneur criteria) in at least one year in the last 2 financial years employed an average of max. 50 employees on an annual average and achieved an annual net turnover or total assets of the balance sheet made at the end of one year in PLN 10 million.
Small business insurance
Among insurance companies operating in Poland we will find a lot of offers addressed to small companies. We can insure against:
- road accident
- civil liability,
- consequences of accidents,
Insurance covers our office or company headquarters, equipment, vehicles (fleet) etc. Some insurance companies offer packages to small entrepreneurs that do not even require estimating the value of the insured assets. Not only that, we can contact an agent who will choose for us and construct a completely personalized insurance.
What to prepare for?
Before you start looking for the best insurance company, you should know that we will not find the cost of our insurance on our websites. There are two reasons:
- it depends on the scale at which we run our business and what exactly we want to insure and on what sums;
- this encourages contact and meeting with an advisor, which increases the likelihood of selling insurance.
This does not mean that you should not make an appointment with an insurance agent! Quite the opposite: it is a great opportunity to learn about the offer that the company can submit to us, ask about issues that bother us and compare the proposals of various insurers. After all, the mere fact that we meet with an advisor does not oblige us to buy any package.
Before making an appointment with an agent, let’s prepare a list of questions and the scope of insurance for a small company, which we mean. Let’s not immediately reject the proposal to extend insurance to something that we have not considered so far. Yes, the advisor (as well as his employer) wants to earn money, so he will suggest various types of allowances, but let’s try not to be paranoid: in the end we are to ensure financial security for ourselves and our interests. If someone draws our attention to a (hypothetical) problem that we have not previously thought about, it is worth considering whether or not to include it in our package.
Small business insurance – costs
It is impossible to give even a small business insurance range, if only because the scope of activities of small entrepreneurs is very diverse. The garage owner and other wholesaler will have different needs and threats. Much also depends on the valuation of the property value: in one office, computers and equipment will present a value of PLN 5,000, because the instruments are only used to run the customer base and issue and print invoices, and in another – over PLN 50,000, because it is an interior design company, so it needs high-quality computers and devices.
The amount to which we want to insure our business also has an impact on the amount of insurance. We will pay another type of insurance fee for up to PLN 200,000, and the bill for PLN 2 million will be different.
What can we insure?
In fact, almost everything that we use to work and earn income can be insured. Breeders can insure their animals regardless of their number and type. Race horses, ornamental chickens, thoroughbred cats, show dogs, exotic fish – financial security will cover possible medical costs, losses due to plague or an accident, e.g. fire.
Sellers and suppliers can insure goods sold and transported, as well as used equipment and employees. There are also insurance packages for damages inadvertently caused by our subordinates such as bumps in the city when delivering the order to the customer.
The areas we manage are also insured. If the plot that we have allocated for business activity has a beautiful garden in which, e.g. customers are waiting for the service to be provided or belongs to the restaurant we run, we can insure it against hurricanes, floods or fallen trees. Therefore, the cost of repairing the damage will not keep us awake at night.
Small business insurance, like any other insurance, is a broad topic. However, remember that an analytical and careful approach to the topic will definitely allow you to make the best decision.