What You Need to Know About Business Insurance Coverage
on Thursday, March 28, 2019
Business insurance coverage is vital to protecting your business assets, property, and employee’s health and well-being. Insurance coverage provides the security you need in the event of a claim that could be the result of an accident, natural disaster or lawsuit. If you don’t have the proper business insurance coverage, one of these unexpected incidents could mean the end to your business.
Types of business insurance
There are several types of business insurance required by law in order to protect yourself, your business and your employees. For example, the federal government requires every business with employees to have workers’ compensation, unemployment and disability insurance. Requirements for other types of insurance coverage varies from state-to-state. You can find out what your state’s business insurance requirements are by contacting your local city government’s office.
Depending on the type of business you own and the industry you work in, there will also be circumstances when your business will be legally required to purchase insurance as part of a contract, lease agreement or business loan.
Some of the common types of business insurance that every business owner should look into are general liability, professional liability, commercial property insurance, workers compensation, commercial vehicle, umbrella policy, inland marine and bonding insurance.
What business insurance coverage should you purchase
With all the different types of business insurance available it can seem like a daunting task to determine what coverage your small business needs. The first step we recommend taking is learning which types of business insurance are legally required by your state. Once you have done that, it is good to look at other types of insurance that will provide coverage on items you would not be able to cover on your own. This could include coverage of commercial property, equipment or potential natural disasters.
In addition to conducting your own research, it is important to reach out to a licensed commercial agent who can advise on the types of business insurance you might need.
There is a lot of customization that needs to be done when purchasing business insurance, which is why you should speak with a knowledgeable agent, or two, to make sure you are getting the best coverage at the best price.
How to purchase business insurance coverage
As a business owner, the most important thing to do is to purchase insurance on the day your business starts. Having insurance in place before you need to make a claim is critical to your reputation and financial well-being.
These three steps will help walk you through the process:
Step 1: Assess your business risks. What are the different types of natural disasters, accidents or lawsuits that could damage your business? Do you have any pending contracts, loan agreements or lease agreements that have specific insurance requirements?
Step 2: Consult with a commercial insurance agent who can guide you through the process and recommend business insurance coverage specific to your trade or occupation.
Step 3: Re-assess your insurance coverage once a year. As your business grows, so do your liabilities. If you have expanded your operations, hired employees or purchased new equipment, you should contact your commercial insurance agent to help you assess if you require any changes in your coverage.
To learn more or to receive a business insurance quote, contact one of our business insurance specialists today.
Insurance Products are not insured by FDIC or any Federal Government Agency; are not a deposit of, or guaranteed by the Bank or any Bank Affiliate; and may go down in value.