Business owners face unique risks each day, and in spite of a risk management strategy in place, businesses still need additional protection from these liabilities. Business insurance is a way to protect the company financially, whether you choose to purchase a policy through a nationwide provider or you seek an industry-specific captive consulting firm.
Your Coverage Options
With business insurance, you protect more than just your financial assets. You can cover your physical and intellectual property as well. Your operations are exposed to lawsuits from employees, clients, or partners, and you face property damage threats from the physical working environment or the actions of your employees. Your business is exposed to theft from employees, cyberattacks, or physical invasions, as well as vandalism to your warehouse, parking facilities, or office complex.
Interruptions due to natural disasters or adverse incidents can lead to a loss of income, but you could also experience equipment malfunction or failure. Your employees must contend with the possibility of accidental injury or death, and your business has obligations and responsibilities issued by various government agencies to protect these employees and provide for medical care in the event of a workplace accident. With so many variables, your liability coverage could include commercial property, commercial liability, workers’ compensation, commercial auto, network security, and more.
Your Assessment of Coverage
Not having enough insurance coverage is just as damaging as not having any at all. You need to make sure the policies you select address your greatest exposures completely. Evaluate the industry your business operates in, the number of employees you have, the risk management strategy you have established, and where your business is located. All of these elements impact the cost of your coverage, but it also adds clarity to how much coverage is needed. Your bare minimum coverages should add least address property damage and general liabilities.
The government requires most businesses to carry workers’ compensation insurance, though this should be conferred with an agent. The classifications of employees, the number of employees, and your company’s safety rating impact quotes for this form of coverage. There are also choices for pay-as-you-go coverage or paying the premium upfront. As the company grows or changes, you should be sure to check with the provider for any adjustments that need to be made with your policies.
Insurance provides financial protection when claims of bodily injury or property damage are brought against the company, as well as claims of negligence or breach of contract with administrative personnel. An insurance policy will usually pay for the cost associated with a legal defense and any settlement amounts awarded through the courts.