Secure the best insurance to suit your company’s needs.
As a business owner, you know that you need business insurance. The primary question is how much coverage will protect you and not be a costly burden. As no two businesses are created equally, each will have its own risks, industry, location, and size. In short, buying a bare-bones, standard business liability policy won’t best protect your business.
First, evaluate how much insurance you’ll need by considering the following:
- The industry you’re in and how much insurance your clients will require that you have
- The amount of property you would have to replace in the case of a loss
- Number of employees
- Total sales and payroll
- State and local government insurance and bond requirements
- Professional liability requirements
Secondly, sit down with a business insurance professional to see what coverage you will need immediately and what you could put off until your growth will sustain additional coverage.
Typically, home-based businesses consist of few, if any, additional employees, but it does not mean there is little revenue. Home insurance alone will not cover any business property or liability. Business insurance to cover the equipment, liability and more will need to be acquired, and if you use your vehicle for business, you will need to make adjustments to your personal auto policy to include business use, or get a commercial auto policy.
If you total less than a few million dollars annually and only have a handful of members of staff, you’re likely to be operating a small business. For and average small business, a Business Owners Policy (or BOP), is usually available for companies with less than 100 employees and revenues of up to about $5 million or less, and will include most coverages a small business needs. This coverage can be tailored to your needs and budget while protecting the business, and offers monthly payments for your premium to help you reduce initial expenses
If your small business is growing and thriving, you may have graduated into a medium-sized company. You’ll need more coverage the more that your business grows, so it’s important to update your policies as revenue and staff increases. If your business owns expensive equipment or has locations in more than one state, you may also want to seek special customized or package policies.
Does your business have at least 500 employees? If so, you may be considered a large business. With multi-million dollar risks, large companies need advanced commercial insurance. While there may be a team of people dedicated to risk management, insurance is a wise investment for any company, large or small. If you run a large business, talk to a trusted advisor on to assist in securing the right insurance.