What to do After Due Diligence
After deciding on the pet franchise that best matches your needs and vision, every business owner needs to purchase insurance. Splash and Dash Groomerie & Boutique advises new owners through the process of buying. The company also has a minimum for coverage.
Since animals are involved, owners are encouraged to rigorously do their research while shopping. There are standard insurance providers, as well as insurance catered specifically for the pet industry. Pet insurances providers cover pet businesses from grooming locations too a single dog walker.
The first Step, Assess Your Pet Franchise Risks
When browsing around for quotes you will need to know what you should look for in insurance providers. This is a two way street. Before issuing insurance, providers go through underwriting–a process of evaluating the business owner’s risk. The insurance company will determine your risk while reviewing your application. They will assess whether they will provide the total, or a portion of your requested amount.
Underwriting is based on risk factors associated with your business like building type, location, local fire protection services, and the amount of insurance you request. These factors determine your premium. Insurance premium is the price you pay. A deductible is the amount agreed upon you will pay if you file a claim.
Usually, the rule for this, is the higher the deductible, the lower premium. Be aware that exceptions happen. If you opt for a high deductible you are taking somewhat of a financial risk. Do your homework. Assess what insurance packages will best protect you, your employees, and your customers.
Quotes and Shopping Around
A good resource is The National Federation of Independent Business. Although those going with a pet franchise can ask the advice of seasoned franchisee owners, and the franchisor. The extent and costs varies depending upon the specifics of your company, or franchise.
Those interested in the pet franchise will need very specific coverage. You will want to get quotes from pet insurance providers that solely cover pet businesses. Two reputable providers that Splash and Dash Groomerie & Boutique likes as options are Petpro and PetBiz. Petpro is partnered with National Insurance Program group, and can provide good coverage without the gaps that a business owner policy might have.
But going with a standard insurance policy can also have it’s advantage, so again, take the time to compare prices.
Consider a Business Owner Policy
Business Owner Policies (BOP), can be cheaper than buying insurance options “al la carte,” or separately. Coverage purchased separately usually has higher total premiums. A standard BOP converges options of property, general liability, vehicles, and business interruption. Pet franchises will want strong liability insurances for unforeseen events involving animals.
Your business may require additional coverage that is not always included in the BOP packages.
Choosing to go with a BOP can help simplify the process and can save you money.
Seek Out Reputable Brokers; Licensed Agents
Commercial insurance brokers acts as a liaison between insurance providers and your business. For simpler insurance like auto insurance brokers are not needed, but for small businesses it is a good idea for new entrepreneurs.
Brokers receive commissions. Depending on the situation, a broker’s commission comes from the insurance provider, or the business owner.
Brokers and agents are licensed, but finding a good one is comparable to finding a good lawyer, or an accountant. Ensure your broker has your interests in mind, and knows all risks of your business. Most states provide a directory for finding a broker. You can also refer to testimonial pages on Yelp or LinkedIn.
Assess Your Coverage Regularly
Insurance protects your business, but as your business expands, the protection will need to match. If your franchise is seeing huge growth and you decide to expand, make sure you speak with your insurance provider before increasing business. If you purchase or replace any grooming or business equipment, you will also want to contact your insurance provider. Discuss all changes of business.
You should plan for an unsteady future. Unforeseen events and disasters can disrupt business. You will want to be covered if there are any interruptions to business, you experience dishonesty in employees, or the unthinkable happens.