Do I Need Business Insurance?
Even though most types of insurance for your business are not required by law, it is CRUCIAL for small businesses to carry proper insurance, regardless of what kind of business you own. The 3 main types of business insurance are General Liability, Professional Liability, and Product Liability. The way your company is structured, LLC, Sole Proprietor, etc, plays a big part in how important it is for you to carry business insurance.
Insurance protects your business from disasters or a potential mishap where the financial consequences could force you to close your doors. This could include an unexpected loss due to fire, wind damage, vandalism, and hail – just to name a few. It also could cover the business income loss while your company must remain closed during a covered claim.
We also live in a litigious society. In the event your company gets sued, your insurance policy covers defense costs that could often exceed thousands of dollars, even for bogus claims, before the Judge makes a decision on your case.
Need more reasons to consider carrying business insurance? How about peace of mind? Rather than worrying how you are going to handle situations that may arise, you are able to concentrate on what truly matters – running your business. Second, business insurance also makes you look credible. Carrying business insurance shows your prospective clients and customers that you are a safe bet and have the proper protection in place if something goes wrong. Third, it also protects your business assets. You work incredibly hard to build a company, why put all that work at risk?
You also may have contracts may require it. When it comes to doing business with other companies or leasing a space for your business, it is often required that you secure the proper insurance coverages to transfer any risk for claims that arise from your negligence.
Just as important is making sure you are carrying the CORRECT type of insurance coverage needed for your company’s individual risks. There are multiple lines of insurance that may be needed such as General Liability, Professional Liability, Cyber Liability, Inland Marine coverage, Workers Compensation, and Commercial Auto Liability to name a few. In addition, policies these days are limited to business description so making sure your policy has the CORRECT classification listed on the policy to cover ALL types of work your business in doing is vital. Navigating through your policy’s EXCLUSIONS and ENDORSEMENTS to see what is specifically NOT COVERED on your policy is important also.
How do you choose the proper insurance company and agent to insure your business? Start by dealing with an independent agent who has access to several different insurance carriers. Make sure your agent specializes in Commercial Insurance to ensure they know how to properly assess your company’s risk and can provide the proper insurance solutions that you need. Commercial insurance can be complicated, so someone who specializes in this type of insurance is crucial.
Keep in mind as your business grows, your coverage needs may change. That is why it is vital to have an insurance agent who maintains constant communication with you, comes to your location to assess your operations and risks appropriately, and explains your coverages to you in terms you understand. We offer free policy review and no obligation quotes with over 30 of today’s top-rated insurance carriers.