Business Insurance: Protect Your Investment
Owning a business comes with a lot of responsibility, and if you’re a first-time business owner, it can be hard to sort through all of the intricacies of business insurance to choose the right plan for you.
Here’s everything you need to know about protecting your investment with a business insurance policy:
Choose A Business Owner’s Policy
There are a few different insurance options when you own a business, but a business owner’s policy is generally the best option. A business owner’s policy combines property insurance and general liability insurance, as well as damage or lawsuits. This is a recommended insurance policy to begin with, and you can build upon this standard policy based on your specific needs.
Don’t Buy The Least Expensive Policy
It’s important to choose an insurance policy that fits your budget, especially for new business owners, but you should never choose the cheapest insurance policy available because there will be key elements missing. Choosing an affordable policy that also includes comprehensive coverage will offer you peace of mind and save you money in the long-run.
Prepare Yourself For An Audit
Your business insurance policy premiums are based on your business’ annual gross sales. If you have just started a new business, you will have to estimate your first year’s sales and provide that estimate to your insurance provider. At the end of your policy period, they may ask to see your actual gross sales, and may adjust your premiums accordingly.
Evaluate Your Potential Risks & Insurance Needs
In addition to a basic business insurance policy, you’ll also want to consider whether to include the following coverage options:
- General liability
- Professional liability
- Workers’ compensation
- Equipment breakdown
- Directors and officers
Once you have the basic business policy, you may wish to add additional coverages against any potential risks that are unique to your business. Businesses in specific industries require different coverages for different risks. For example, additional workers’ compensation coverage may be needed for construction businesses, and cyber liability coverage may be necessary for web-based businesses. Identifying the risks your business may face will help you choose a more comprehensive policy.
Consider Adapting Your Policy As Your Business Grows
The amount of coverage and coverage inclusions may need to change as your business grows. It’s important to re-evaluate your insurance policy every year to ensure you are properly protected. Any major changes that occur in the middle of your coverage period should be addressed with your insurance broker as soon as possible.
Finding a good insurance broker is one of the first steps to choosing the perfect insurance coverage for your business. Contact Jeffery & Spence Insurance today to learn more about how we can help.