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When we become our own boss and build our dream companies, we prepare for all the ups and downs that come with starting a business. However, no matter how much research we do, we have to expect the unexpected. For that reason, we have to find the insurance that best suits our needs.
Types of Coverage
There are two primary losses a business may experience: damage to physical assets and monetary losses from lawsuits. Your choice of coverage depends on what you want to protect. Check with your agent for any package deal on one or more of these types of coverage.
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Commercial Property Insurance
This type of coverage protects physical assets such as buildings, machinery, furnishings, and so on. It applies to anything that is considered a company’s private property. Small businesses often start at home. However, they still need business coverage, because homeowners’ insurance doesn’t cover business-related property the same way.
Commercial Liability Insurance
Commercial liability protects the company from losses caused by a third-party lawsuit.
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General Liability Insurance
General liability protects the company against third-party claims for injury or property damage.
Business Auto Insurance
This coverage includes the company’s vehicles, such as trucks and cars. Commercial auto insurance also includes liability and physical damage. It is important to note that you should not substitute commercial auto insurance with a personal one.
Business Owners Policy (BOP)
The BOP is a package deal that usually combines commercial property, commercial liability, and other types of insurances.
According to state worker protection laws, most businesses are required to purchase workers’ compensation insurance. This type of coverage provides benefits to workers when they are sick or injured. Also, this insurance has employers’ liability coverage, which protects against lawsuits filed by injured workers.
Business Interruption Insurance
During a natural disaster, a business might experience losses due to the period it’s not able to operate. However, business interruption coverage makes up for the income lost during the event.
Have a Plan Before You Look for Quotes
Now you are familiar with the types of insurance out there. So now, find out what kind of coverage best fits your business by shopping and comparing quotes. Before you shop for a quote, have a written description of the following:
- What industry your business is in and how long you’ve been in the field
- The location of your business and the number of employees
- General operations
- A list of the company’s property
- Gross annual sales and total yearly payroll
BrokerLink Business Insurance states that’s it’s extremely important that a company gets to know their clients. This is because once a company gets to know you, they will match you with insurance that’s tailored to the size and type of company you run.
Request Several Quotes
Research different companies and compare coverage details, prices, and other offers. However, don’t automatically go for the lowest price, because it may not serve you when you most need it. Instead, select the one that offers the most protection closest to your budget.
Where Should You Get Business Insurance?
Large companies often have risk managers who are in charge of assessing possible risks and taking necessary precautions to ensure the company’s safety. If you own a small business and you do not have a risk manager, or this is your first time buying insurance, you should see an experienced insurance agent or business consultant.
Similar to the standards set for your business insurance, you want an agent who specializes in the size and type of company you own. You will know you’ve found the right one if they show interest in your business and are determined to see you succeed.
Protect Yourself Against Loss
Your business will change and grow over time, and your insurance should do the same. Review your insurance regularly, and check with your agent to see if there are any changes that should be made. Then, in case of emergency, an incident, or a natural disaster, you can save your business from a critical financial hit.