Business Insurance Buying Guide protect you from some of the most common losses experienced by business owners such as property damage, business interruption, theft, liability, and worker injury. Whether you starting a new business, are a new business owner, or have owned a business for many years, commercial insurance is one of the most important ongoing financial investments you make in the life of your company.
Operating a business is extremely challenging without worrying about suffering significant financial loss due to unforeseen circumstances. Purchasing the appropriate Business insurance coverage can make the difference between going out of business after a severe loss or recovering with minimal business interruption and financial impairment to your company’s operations.
Do i need commercial Insurance? what policy and coverages do i need?
- For any kind of business, certainly it is useful to get General liability insurance.
- Business that have manufacturing, wholesaling, distributing, or retailing products, needs product liability insurance.
- Professional liability insurance is beneficial to Businesses that provide services to customers.
- If you have businesses with a significant amount of property and physical assets, it is beneficial to get Commercial property insurance.
- For any businesses that are run out of your personal home, it is beneficial to get Home-based business insurance.
- Business owner’s policy is beneficial to small business owners. Especially home-based business owners.
- If your organization collects sensitive data or you have non-sensitive data at scale, get cyber protection policies.
Best Practices when buying Business Insurance
Types of coverage you choose will really be dictated by the nature of your business and the risks it carries(1). Therefore your individual needs may go far beyond what Business Insurance covers. A smart insurance agent (and perhaps an attorney experienced in your industry) can give you the best guidance. Still, there are some basic things to consider when buying business insurance.
- Before you choose an agent or broker, make sure they’re licensed to sell insurance in your area.
- All insurance policies include various limits, conditions, exclusions and restrictions. Above all notice to all of them.
- Consider that some insurers may require a minimum level of premium.
- Discuss your business operations with your agent or broker to determine coverage needs.
- Ask if discounts are available for multiple policies.
- While getting insurance seek ways to reduce costs. Also take the time to seek other ways to reduce business risks. For example, review your employee training, information technology security and workplace safety policy.
- Seek the advice of a broker who has expertise working with entrepreneurs. Certainly finding an affordable, tailored insurance package to your company, is best done with the help of an insurance broker.
- Watch out for Deductibles to keep premiums low. That is to say the higher the deductible you select, the lower your annual insurance premiums will be.
- Examine the value of your property. So if you lost everything in a fire, what would it cost to rebuild and replace all of your items?
- Consider your potential liability risks. Some businesses have higher liability risks than others. For instance, a nightclub that serves alcohol is more vulnerable to potential lawsuits and requires higher liability limits.