What is online insurance?

Another branch of fintech that has taken off is online insurance. Now as a small business owner, you might ask, “Do I need insurance for my employees.” The answer is yes, you need insurance for your employees and business if you want to keep growing and be protected. 

You can buy insurance online. Search engines have made it faster to compare policies.  Traditional insurance companies and purely virtual insurers make their products available on many e-commerce sites. There are also online insurance aggregators that you can visit such as NetQuote.com, Insure.com, or InsWeb.com.  Some companies also have apps that you can download so that it’s easier to customize the policy according to your needs.

What exactly is online insurance? 

It is the process of using the Internet to get an insurance policy directly from e-insurers. This cuts out the middle man thus saving the cost of commissions.  These savings and the less overhead that re-insurers have can translate to lower premiums for policyholders. It is a fast and efficient process with less paperwork.  

Online insurance is a viable option for entrepreneurs. You will need at least four kinds of insurance for your small business. 

  1. General liability insurance in case a customer or guest gets injured in your store or office. 
  2. Commercial property insurance in cases of fire, floods, and other disasters.  
  3. Workers’ compensation insurance benefits your workers in cases of injury, illnesses, and even death. 
  4. If you have employees that drive around, you will be thankful to have auto insurance and not need it than need it and not have it. 

There are other types of insurance but these four will do for most types of small businesses.

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What are the advantages of online insurance? 

1. It is darn cheaper. 

Studies say online insurance is about 30% to 70% cheaper than traditional insurance. This is because e-insurers don’t have to pay insurance brokers’ commissions. 

There are no branches or outlets staffed with people that cut deep into operations costs. The process is mostly paperless. This all translates to lower monthly payments and higher returns for policyholders. 

2. You can make an informed decision. 

There are websites that compare insurance companies and their products side by side. This allows customers an apples-to-apples comparison between competitors. 

No more enduring through an insurance agent’s presentation, then forget about it the next minute. These insurance aggregators, who are insurance brokers, also have help sections should you get lost in the insurance jargon.    

3. Convenience 

Again, all of this is done at the convenience of your home. If you feel like meeting an agent is laden with obligations, then you should explore online insurance.  

E-insurers put a lot of thought into making their websites or apps very user-friendly so that you can focus on purchasing the right product. It saves a lot of time and effort, you don’t need to get dressed. 

4. It’s quick

Payment is also automated and done online. E-insurers integrate with the most popular e-payment platforms and e-wallets. 

You can also make transfers from your online bank account. 

Apps are provided for policyholders so that they can easily track, upgrade, and monitor plans.  

When our employees go on emergency flights, we set up special travel insurance for them, that is specific to that trip. It’s all done online and it’s quick.

How to choose an online insurance

1. Research

When choosing online insurance you need to do your homework. Buy only from reputable online insurance companies. This minimizes the risk of fraud. 

If you feel overwhelmed, you can always use the chatbot feature or hotline to talk to a person. 

Don’t feel like you have to rush any decision. Always read the fine print. 

There are variables that should be considered like geographical locations. Areas that are prone to flooding, near a faultline, volcano, and other natural disasters can raise the premiums. 

2. Be sure to read up on reviews. 

Find out the experience of other people in filing claims. How about those whose plans have matured? Did they get the benefits promised to them?  

As a small business owner, you don’t have to take the plunge. Test the waters first. Look for entry-level products that you can easily pay for. 

Then depending on how you find it, level up or look for another e-insurer. 

Buying the right online insurance will help you make money and may end up saving your business in the future.   Check out sites like www.consumerreports.org  or www.insureye.com  to read reviews of insurance companies.

3. Visit your government insurance agency’s website 

Insurance is a regulated industry.  Laws can vary from country to country and from state to state. 

Insurance companies even if they are purely online must have permits to do business and offer their products in whatever area you are. 

Regulatory agencies have a directory of compliant insurance companies.  

These agencies also post a bill of rights for policyholders which insurance companies should observe.

4. Consider more than just the price

Monthly premium or amortization is just one aspect of an insurance policy.  

You have to take a look at the whole coverage amount which should be reasonable. 

As a business owner, you want coverage for accidents or illnesses common in your industry.  

If you are in the transport business, make sure that your employees are covered each time they are in the field. 

Find out how stable is the insurance company. Insurance firms make money by investing their members’ money.  

Investing has risks. Will the company be able to withstand any volatility in the market? Rating firms like  Moody’s, Standard & Poor’s (S&P’s), and Fitch Ratings can help give people an idea of how financially stable companies are.  

5. Learn the terminologies 

You don’t have to be a walking encyclopedia of all things insurance.  In just a few clicks you can find out phrases and terms in insurance products that you should keep an eye on. 

Words like “exclusions” should be carefully studied. Exclusions mean the things that your insurance policy won’t cover. You won’t be seeing any money at the end of certain events such as arson. 

Another word you should read up on is “claim process”. It describes the process and paperwork needed in order to collect on your policy.  

Knock on wood, but it’s always good to have the needed documents in advance or at least know if you can quickly secure them,  such as a properly kept employee personnel files. 

Conclusion: Which online insurance is best?

Insurance is not a one size fits all proposition. You have to find what best fits your budget, needs, and situation. 

A certain insurance company might be among the biggest globally but that does not automatically mean they are the best in your locality. 

On the other hand, going small may leave your policy exposed to economic ups and downs.   

The best way is to test the waters if it is your first time getting a policy for your business or employees. Try several insurance firms simultaneously and for short one-year periods only. This will allow you to screen out the pretenders and stick with the one that will help your company grow.

By Eman Tonogbanua

Hello! I'm Eman Tonogbanua, a seasoned marketing consultant, writer, and communicator with years of experience under my belt. My passion lies in the dynamic world of digital marketing, where I thrive on optimizing e-commerce platforms and crafting compelling content that resonates with audiences. When I'm not immersed in the latest marketing trends, you'll find me cheering on my favorite sports teams or diving into a fascinating history channel. Whether it's analyzing a new marketing campaign or discussing historical events, I love exploring new ideas and sharing my insights with others. Let's connect and see how we can make great things happen together!