Securing insurance for your new business.
Operating a business is a risky venture, as even some of the most seasoned entrepreneurs aren’t guaranteed success. There’s so much to think about when you’re running a business that it’s natural for business insurance to fall by the wayside. However, it’s important that you don’t let it! Valuable coverage for your business can protect it from financial disasters and damage. If you’re looking for business insurance for your new venture, here are a few things to do to ensure you get the right coverage.
Gauge Your Risk
An insurance company will gauge how ‘at risk’ you are, and then charge you accordingly. A high degree of risk means high premiums, while low risk means a cheaper price for your insurance. When you go through the process of purchasing insurance, you can bet that the underwriter will be looking at your risk factors. This can range from your industry to your business’ location, size, experience, and more. You can help by ensuring you have the right certifications, if necessary, and following all safety procedures and rules.
Find the Best Fit
Business insurance can be overwhelming, especially if you’re new to it. It’s not as simple as securing a renter’s or auto insurance policy. There are a number of different types for all kinds of businesses. Here are just a few examples of the types of insurance out there:
- General liability covers lawsuits and other legal fees.
- Property insurance covers the building (or buildings) and contents where the business is located or stores inventory.
- Product liability insurance covers legal problems that arise from the products you sell.
- Professional liability insurance protects service-based businesses.
- Business interruption insurance covers a business’s income and extra expenses in the event of damage or disruption from covered loss, during which they have to suspend or move ordinary business operations.
- Data Loss and Intrusion insurance covers losses due to computer crashes, viruses, and hacking under specified conditions.
- Commercial Auto insurance covers your business owned vehicles for accidents and vehicular liability from company vehicles, employee vehicles and rented vehicles.
- Workers Compensation insurance provides medical payments to employees who are injured on the job.
- Employment Practices Liability insurance covers lawsuits related to employee management and staffing decisions that are made contrary to existing laws
Talk to your insurer about what coverages are best for your business’s needs.
Once you’ve found and secured the right coverages, it’s incredibly important to keep it up-to-date with your business’s needs. As your business grows, your policies will need to as well. Staying on top of any updates to policy and price can help save you money or heartache down the road.