Running a business means having to deal with risk. And the best way to mitigate that risk is by investing in business insurance. Alongside it being a legal requirement, insurance is vitally important for businesses of all sizes and industries to protect them from any unexpected events, accidents or damage.
To help you choose the right coverage for your business, follow our tips.
1. Understand the different types of business insurance
It’s important to understand exactly what each policy covers in order to choose the best insurance for you. So, let’s look at them now.
General liability insurance
This type of insurance protects your business from any third party claims against your company. For example, any injury claims or claims against your products which can end up with lawsuits and lots of legal fees.
Professional liability insurance
This coverage is for businesses that provide services to their customers – including consultants or IT services. If someone feels that your business has failed to deliver an adequate service or has caused damage to them, they may make a claim against you.
Commercial auto insurance
Any vehicles used in a business context need to be covered by insurance. This coverage protects business vehicles in a similar way that car insurance for individuals does – in the event of an accident, repairs or injury recovery costs are covered by your insurance policy.
Building insurance
Protects warehouses, stores, offices and more from any damages sustained in robberies, accidents or as a result of natural disasters.
Look at your business needs
Firstly, it’s important to consider what insurance your business needs. To figure that out, you’ll need to look at your assets. They’ll determine what you need to protect with an insurance policy.
- If you use vehicles as a part of your business, you’ll need to protect them with commercial auto insurance.
- If you rent space for your business, whether it’s a store, office or warehouse, you’ll need building’s insurance.
- If you offer services to your customers, you’ll need to get a professional liability policy that can help you deal with any claims against your company.
3. Consider the level of risk
One of the biggest determinants of what insurance you’ll need is risk. Depending on your industry, business size or location, you’ll face different levels of risk For example, businesses that face a higher level of risk in their business operations, they’ll require more extensive coverage than others. Without the right coverage, you could find yourself without the right support in the event of an accident or lawsuit. So, it’s important to take the risk factor into consideration when considering insurance policies for your business.
4. Choose a trusted provider
Lastly, it’s crucial that you choose an insurance provider that you trust. In the event that you do have to make a claim, you need to know that you’ll receive high quality service so that your business can bounce back.