There are risks associated with every business, whether the business involves one person, hundreds, or thousands. Commercial insurance handles these risks. Different types of insurance cover many aspects of operating a business. Coverage such as accidents that may injure employees or customers. It could also include losses that involve business furnishings, equipment or housing. It is sometimes difficult for business owners to make the right choices about insurance, especially when there are so many insurance products, including specialty or niche insurance products.
Niche insurance policies exist, in most instances, as a way to simplify insurance decisions for insurance companies and their customers. A large operation that has enough special coverage needs requires a custom policy. It also offers enough potential premium revenue to justify specialized service. A niche product is often a policy that provides a combination of coverage that meets the need of a defined market, such as small contractors, offices, restaurants, appliance repair, etc.
Niche insurance products are attractive because they may offer proper coverage at an affordable cost. However, care has to be taken when insurers sell, and businesses decide to buy such policies. Business owners and key decision-makers place a priority on areas other than insurance needs, so an operation may be attracted to buying a niche product, assuming that it will take care of everything.
Consider a niche product as a starting point as you discuss the options with a Hertvik Insurance Group professional. Together you can evaluate your operation and determine your coverage needs, what issues can be handled by insurance, what type of insurance would best handle the need, and what amount of insurance can affordably be purchased. Another key is to discuss how an operation may be altered or run differently to reduce the chances of loss that can’t be handled by insurance. Remember, a niche product is a sensible choice only when it fits your needs.