As a business owner, you already know the importance of protecting your company. You also recognize that purchasing appropriate business insurance is one of the best ways to accomplish this goal. As you gather a few simple business insurance quotes you should be able to get a feel for how much it will cost. But to figure out exactly what you need, ask yourself the following questions.
First, sit down and take stock of the nature of your business.
- How big is your company? Consider both geographic locations and number of offices.
- Are you experienced and/or an expert in your field?
- Do you have a strong, competent management team?
Honest answers to these questions can help you in estimating how vulnerable your company is to certain risks. For example, if you are just starting out and are unfamiliar with the ins and outs of your field, you or your staff are much more likely to make costly mistakes that could leave you vulnerable to lawsuits. As a result, you would be at higher risk and are in particularly strong need of a comprehensive liability policy
The next thing to consider is which specific risks you should protect against. To determine this, ask yourself the following:
- Do you have a commercial vehicle or vehicles?
- How much would it cost to replace your property, supplies and office equipment if a fire, theft or natural disaster happened?
- In your line of work, are you at high risk for being sued?
- Is your business located in a place where a natural disaster is likely to occur?
- How many employees do you have, and what would it cost to pay them?
- Do you work directly with clients, thus making you vulnerable if you or your employees make a mistake or damage client property?
In general, determining your business insurance needs requires you to do three things. First, come to a realistic understanding of all of your business assets. Then contact a trustworthy insurance agent who can ensure that you have a policy that covers you in case of the loss of these assets. Finally, be sure your policy protects you in the event of lawsuits stemming from personal injury, errors and omissions and injuries to your employees.
Taking the time to answer these questions and to find an insurance agent you can trust might just be some of the most valuable work you have done in a while. So take as much time as you need to thoroughly assess your business and cover all contingencies.