Whether you are a budding entrepreneur just starting your own business or have been in operation for years, your company’s insurance is of utmost importance. Finding a plan is easy enough. After all, there are so many competitors out there with offers that feature attractive benefits. Before signing any agreement, you should take the time to understand factors that will help you pinpoint the best options to fit your individual needs.
Ensure Adequate Coverage
As a business owner, you carry a lot of responsibility on your shoulders. As you shop, make sure you cover them all. No one policy is able to cover the various aspects of your industry that needs protection. Among these include but are not limited to:
- General limited liability- No matter the type of business, you should certainly obtain this type of policy as it covers you in the event you are alleged to have caused bodily harm or property damage to another individual
- Property insurance- We are unable to predict the future, and you should be prepared for the possibility of your business becoming the victim of fire, flooding, theft, etc. To further protect you during these types of situations, you can also add loss of earning insurance to cover expenses if you are unable to operate.
- Auto insurance- If you or employees operate a business vehicle, it, too, must be insured. If your employees operate their own vehicles, it’s strongly recommended to pick up non-owned auto liability insurance to protect yourself in the event they have an accident on the job.
- Data breach- With the increase in cyber-crime, having insurance protecting the business from data breach is very important, specifically if your company secures sensitive personal information.
Keep the Law in Mind
Every state in the country has a defined set of statutes dictating the type of insurance your business must have as well as how much. Failing to meet these requirements can cost you time and money in the future, and it’s important that you review the laws of the state in which you operate. This can become tricky if you operate in multiple states, and it’s a good idea to work with an experienced business insurance agent to ensure you are properly covered.
Take Advantage of the Competitive Market
Time is money, and, as a business owner, you likely don’t have much of it. However, investing a couple of days to shop around can save you hundreds or even thousands of dollars in the long run. Never accept the first quote you receive. Instead, look around and find out what other offers are available. Not only will this give you a well-rounded idea of what types of policies you should consider, but it also gives you the power of negotiation.
Also keep in mind that things are sometimes too good to be true. If you come across an offer that is far more ideal than any other agency is able to provide, there is a good chance there are stipulations defined in the fine print that is not in your best interest. It can be difficult to understand the jargon, so a competitor will often be happy to interpret the information in hopes of gaining your business.
The Home-Based Business
Since the advent of the Internet, the number of people able to work-at-home is at an all-time high. Even if you don’t have employees, keep in mind you can still be sued, and your homeowner’s insurance does not cover claims against the business. That’s why it’s so important to at least be protected by limited liability insurance.
Don’t Overlook Yourself
You started your business from the ground up, and it has become your bread and butter. Even if you have come to the point where you’re able to delegate various tasks to employees, you are still the one who keeps the company focused on its goals and headed in the right direction. However, in the event you become ill or otherwise unable to work, having insurance on yourself to cover things such as overhead, utilities, payroll, and rent can prove crucial.
Consider Additional Liability Coverage
While we like to think it will never happen to us, you can face major claims. When you consider an umbrella policy, you will receive additional protection of your assets. They kick in when you reach your liability limits on other policies and also cover things your other policies don’t. Umbrella policies typically cover things such as:
- Property damage
- Various types of lawsuits
- False arrest
- Malicious prosecution
Low Costs Not Always the Best Choice
Most of us naturally opt to purchase products or services at the lowest possible costs. However, when it comes to insurance coverage, picking the policy with the lowest premium payment is not always the best choice. This typically means that, when you need to file a claim, you will receive far less coverage. This doesn’t mean you should always pick the highest possible deduction, but carefully consider the possibilities and what kind of financial situation you could find yourself in if something negative were to happen to your business. Pick a deductible that you feel you could survive with financially.
Help You Can Rely On
It’s plain to see that choosing the right business insurance is a complex process, and you likely don’t have a lot of knowledge of all the intricacies. To best ensure you select well-rounded coverage that gives you the highest level of assurance, it’s a good idea to take time to sit down with an experience business insurance agent. They will be able to understand your industry and explain all the options specific to your needs that should be taken into consideration. Adequate coverage can make the difference in whether your business sinks or floats when the going gets rough.