Questions You Should Ask Before Buying Business Insurance
Protecting your business with the right insurance policy is one of your many responsibilities as a business owner and it is crucial to have the best policy. No two businesses are the same and your insurance needs can vary depending on the industry and other factors.
Before purchasing a business insurance policy, be sure to ask these questions of your business and your insurance agent.
What Insurance Does Your Industry Require?
In some industries, you may be required to carry certain types of insurance in order to operate or obtain important licenses. These requirements obviously vary per industry, but generally include liability coverages such as liquor liability insurance being required for businesses that make or distribute alcohol.
What are Your Business’ Most Valuable Assets?
Different businesses have different focuses. Some businesses have valuable equipment while others focus on service or produce. You will want coverage tailored to cover your business’ equipment and products. If your businesses uses vehicles for work purposes, you will also need commercial auto insurance.
Physical items aren’t the only asset to a business, however. Employees are a crucial part for growing and maintaining a successful business. Employees should be covered under business insurance such as workers compensation and directors and officers insurance.
What Liability Risks Does Your Business Face?
Liability relates to lawsuits that can be filed against your business by third parties. General liability is one of the most common liability insurance policies, as it covers common claims concerning third party bodily injury, property damage and personal or advertising injury. Depending on your industry and services offered, different liability risks could threaten your business’ finances. Ask about policies to protect your business against claims such as professional liability, umbrella liability, cyber liability and more.
How Can You Bundle Your Business Insurance?
Bundling your business insurance coverages can help you get more comprehensive coverage by saving money. A business owners policy (BOP), for example, combines commercial property insurance and general liability into a flexible policy for small businesses. Ask about how you can save money on business insurance by bundling coverages.
When looking to protect your business, make sure to evaluate all of the risks and ask an insurance agent for clarification on any questions you may have. Your business is a huge investment and your policy should be tailored to match its unique property and liability risks.