Day-to-day operations at your business can keep you busy. But having optimal business and commercial insurance coverage is something you don’t want to forget.
Business and commercial insurance can safeguard you and your business from a wide variety of claims including injury, property damage, workers compensation and more, no matter the size of your business.
The U.S. Small Business Association offers these tips to consider when buying insurance coverage for your business. These tips offer ways to assess the most optimal type of insurance to meet your needs.
Assess Your Risks
During the underwriting process, insurance companies determine the level of risk they’ll accept when issuing policies. The insurance company reviews your application and determines a level of coverage. Each underwritten policy carries a premium and a deductible, and each varies depending on the policy. Generally, the higher deductible you agree to pay, the lower your premium will be. However, when you agree to take on a high deductible you are taking on some financial risk. So, it’s important to assess your own risks before you go shopping.
Shop Around
The National Federation of Independent Businesses provides information for choosing insurance to help you assess your risks and to make sure you’ve insured every aspect of your business. The extent and costs of coverage vary from company to company. Some brokers specialize in insuring specific types of business, while others can connect you with policies specific to your business activities. Often specialist brokers can get you the best coverage and the best rates.
Consider a Business Owner’s Policy
Insurance can be purchased separately or in a package called a business owners’ policy (BOP). Purchasing separate policies from different insurers can result in higher total premiums. A BOP combines typical coverage options into a standard package and at a premium that is less than if each type of coverage was purchased separately. Typically, BOPs consist of covering property, general liability, vehicles, business interruption and other types of coverage common to most types of businesses. However, make sure you understand the extent of coverage in any BOP you are considering. Not every type of insurance is included in a BOP. If your business has unique risks, you may require additional coverage.
Find a Reputable, Licensed Agent
Commercial insurance brokers can help you find policies that match your business needs. Brokers receive commissions from insurance companies when they sell policies, so it’s important you find a broker that is reputable and is interested in your needs as much as his own. Make sure your broker understands all the risks associated with your business. Our experienced Johnson & Associates team is ready to help you today!
Assess Your Insurance Coverage Annually
Your liabilities grow as your business grows. If you have purchased or replaced equipment or expanded operations, you should contact your insurance broker to discuss changes in your business and how they affect your coverage.
Visit the U.S. Small Business Association to learn about these tips and more.
Protect your business against a variety of claims, including those related to property damage, bodily injury, personal injury and a variety of other unexpected occurrences that can arise. Whether you’re a small business owner or independent contractor, give yourself peace of mind with a plan that meets your needs. We’re here to help. Contact us today at (336) 226-8595!