I do the best I can with the money we earn, but sometimes it just doesn't make it through to payday. If you don't have a great credit history, it can be hard to make a successful application for a credit card or personal loan. Unfortunately, my partner has a really poor credit history, so we struggle to get loans through traditional paths. Instead, we rely on loans from friends and family as well as payday loans. This blog is all about the ways to make it through to the next pay if you have a bad credit rating like us.
An insurance broker can help anyone who is going into business for themselves determine the best type of insurance they need and the right amount of coverage. However, as the business owner or the person who is self-employed, you'll need to make the final decisions yourself as to your business insurance coverage and policies. Note a few things to discuss with an insurance broker so you can ensure you ask the right questions and get the information needed to make those decisions for your business.
1. Is errors and omission insurance needed for every type of service business?
Errors and omission insurance, or O&E, is often chosen by those who provide a service, not a product, and who might be sued because of some fault in their service. As an example, a home appraiser might undervalue a home and in turn, the homeowner doesn't carry enough insurance to reimburse them for costs they face for repairing that home after a natural disaster. The homeowner might then sue the appraiser for their oversight.
If you think you might need O&E insurance, discuss with your broker the likelihood of being sued, how much a person might reasonably be paid in a judgment, and if the proper agreements between you and a client can reduce your risk of liability. This can affect the amount of O&E insurance you should carry, if any.
2. Ask what would happen to your business if you were to become disabled
In the event of your disability, you may want to have insurance coverage that would provide for more than your medical costs. For those who own a business or who are self-employed, being disabled can mean not having any type of income. Without added insurance to protect you, this can mean going into debt and losing all your assets simply to meet your everyday expenses. Discuss this scenario with your insurance broker so you can note the types of insurance that would protect you and how much coverage you might need.
3. Discuss your options for an umbrella policy
A person who owns a business or is self-employed may have liability insurance, auto insurance for a company car, property insurance, worker's compensation insurance, and the like, but an umbrella policy is an added layer of protection in addition to those coverage options. This protects you and your business for any judgment amount above and beyond what is paid through these other insurance policies.
For more information, talk to an insurance broker like National Corporate Broking Pty Ltd.
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