Getting an insurance policy for your business is crucial, even if you have to use your personal investments. You never know when a natural disaster or a catastrophic event will occur, and if you aren’t covered it can be detrimental to your business. Here are four tips on the different types of coverage you can get to insure your business.
Find the Right Type of Coverage
The first thing that needs to be done to get your business insured is to take out a business owner’s policy. This type of policy covers virtually every type of liability and gives your business general protection against such things as property damage or business lawsuits. It’s generally recommended that you get at least a $1 million policy for liability coverage. After you get your business owners’ policy there are several different types of “extra” coverage you can choose from, such as automobile, earthquake, or flood. Choosing the right type of coverage depends on the risks that are associated with your business’s location, practice, industry, etc. You may also want to think about getting business-interruption insurance, which protects against any loss of income that may happen as you rebuild your company.
Find a Good Agent
It may take several tries for you to click with an agent, but finding a good broker that you feel represents you and your business well is important. Make sure that your agent manages your business insurance policy appropriately, and thinks broadly of what your needs are. It is also critical to find an agent who is good at analyzing your business’s vulnerabilities and predicting any future exposures to different risks. You can find great agents by asking other businesses in your industry or business groups for their referrals. Keep in mind that different agencies specialize in different areas of insurance, so make sure to choose on that fits your business.
Don’t Wait to Insure Your Business
It can be hard to justify spending your personal investments on your business’s insurance, but as your company expands, it is important that you become more aggressive about protecting your business. Anytime there are major changes in your business you should review your insurance.
Spending More Results in Spending Less in the Long Run
If you have a small business, it is understandable if your budget for insurance is small. However, it is often the case that when you spend more initially for insurance, you end up spending far less in the long run. With business insurance, there are several payments that must be made (including premiums and deductibles) but these combine to make a lower investment.