If you are starting a new business, a vital action is to ensure you purchase business insurance that suits your enterprise. Having proper coverage for your business could protect your personal assets from liability associated with business debts and keep your business afloat when unexpected situations arise. The types of insurance that your business will need may include general liability insurance, product liability insurance, professional liability insurance, commercial property insurance, home-based business insurance, and cyber liability insurance, to name a few of the options.
A Guide on How to Choose the Right Business Insurance
If you have never purchased business insurance, you could be unsure of the types of insurance that will work best for your company. Our step-by-step guide could help you navigate purchasing business insurance to make the best decision for your activity.
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1. Understand your industry: Every business is different and comes with various risks. Understanding your industry is the first step in understanding the policies you will need. Do you have a large staff? Do you own a property? Do you have a large inventory? Do any of their duties come with risks? Is there a risk that your business could be named in a lawsuit? Do you sell products or deliver services? As your business is unique, so are your insurance needs.
2. Look at the available coverages: Business insurance policies are not designed to be one-size-fits-all. Coverage can be mixed and matched until you get the configuration that is best for you. Some of the basic coverage you may need for your business includes general liability business insurance, health insurance, workers’ compensation, and property insurance.
3. Select the right limits and deductibles: The policy limits and deductibles of your policies will impact the cost of monthly premiums. Basic business liability policies usually have a $1 million limit per claim and a $2 million ceiling for how much insurers pay throughout the policy’s life. If you cannot afford to pay any losses that exceed those limits, you may want to look into obtaining extra coverage, such as excess liability coverage or umbrella insurance.
At the end of the day, you should not choose a policy simply because it is cheap. Low premiums are more affordable but could cost you more in the long run. A policy with limits that are too low or saddles you with an expensive deductible can cause a financial disaster. Working with one of our experienced insurance agents can help make this process simpler, as we can advise you about the best policies to suit your company with your budget in mind.
Work with One of Our Insurance Agents
To ensure your new business is protected, you want the right insurance policies from the best providers that can be trusted to pay out when something goes wrong. The right policies could keep you from having to bear the entire financial weight when an unexpected event occurs, so you can continue to operate and grow. Connect with us today to find business insurance policies that will be the best match.