When looking for a business insurance company, you’ll want to pay close attention to the coverage they provide. While brick-and-mortar stores and restaurants are more likely to face slip-and-fall accidents, businesses that run from home are not immune to the risk of natural disasters. You’ll also want to protect your employees, especially if you employ staff. Manufacturing products also has a higher risk of product defect lawsuits.
Commercial property insurance
When looking for an insurance company to cover your business operations, consider a few factors. First, you need to understand how premiums are charged. Do they require a deposit from you? What is the coinsurance clause? Do you need a commercial policy that covers your premises and inventory? If so, you need to understand this clause and discuss it with your broker. Secondly, you should be able to compare quotes. Lastly, it is important to know whether the policy covers all risks.
Professional liability insurance
If you own a business, then you should consider buying professional liability insurance. Although many companies are required to carry liability insurance, it is not mandatory. Depending on the state, some professions may be required to carry this type of insurance. For example, project managers may forget to sign off on a project, resulting in delays and increased costs. Massage therapists may cause tissue damage and be sued. Professional liability insurance protects a business from lawsuits if a client sues them for damages.
Business interruption coverage
When choosing a business insurance company, look for one that offers business interruption coverage. The cost of business insurance is directly proportional to the level of business interruption coverage, and underinsured businesses could face even greater financial problems. In order to determine the appropriate amount of coverage, estimate the loss if your business shuts down in the worst-case scenario. In addition to calculating the expected loss, estimate your projected annual income, then multiply it by twelve.
Loss of rents and rental value
In choosing a business insurance company, you will want to select a policy that covers your operations and exposures. A Business Owners Policy covers property, general liability, and business interruption. These policies have strict underwriting guidelines and are most appropriate for small “main street” businesses, accountant offices, and low-density apartment buildings. However, if you are in need of more coverage, you can consider an Owner’s Policy, which can be a very competitive option for smaller businesses.
Limits of liability coverage
Liability limits are important because a business can be liable for bodily injury or property damage in a traffic accident. For example, an office manager may use his personal vehicle to drop off a sample at a client’s office. A salesperson may also use his personal vehicle to visit a customer. If the business is found liable for damage beyond his personal auto insurance policy limit, he could be sued for the full cost of the repairs.