When running a business, it is important to make sure that you have the right insurance. Business insurance, for small to large companies, is referred to as commercial insurance. The right commercial insurance will help protect your business.
Know What You Legally Need
First, you need to know what commercial insurance you are legally required to carry. In some states, you are required to carry some form of insurance to operate. If you have any other employees, you will likely be required to carry worker's compensation insurance. If you are renting a property, you may be required to carry general liability insurance as part of your rental agreement.
You may be required to carry certain insurance in specific industries. For example, if you run a bar and serve liquor, you may be required to carry liquor liability insurance as part of your license requirements. You need to review all your business relationships and contracts and see if you need to carry specific insurance types legally.
Understand the Risk's Your Business Faces
Second, you need to make sure you understand the unique risks that your business faces. Each industry faces different types of risks based on the type of service they provide. For example, if you run a retail or convenience store, you may want to protect against property loss, which can occur during robberies and thefts. Or, if you run a business that sells an app, you may want to have data breach protection insurance. Figure out the areas where your business is vulnerable and ensure you carry insurance policies that will protect you in those areas.
More Insurance Is Better Than Less
Insurance is designed to protect you against loss. When you are looking at policies, remember that more is often better. Make sure your policy limits cover your degree of risk. Be sure to keep your deductibles within a reasonable amount to have the cash flow to cover.
Things such as lawsuits, loss of property, data breaches, and property damage can be expensive to pay out of pocket, which is why it is usually better to pay a little more for the right level of insurance coverage.
Work with An Agent Familiar with Your Industry
Finally, when it comes to building the right commercial insurance policy, you will want to work with an agent who is familiar with your industry. Each retail industry has its own unique needs, and you will get the best coverage when you work with an agent who understands your industry.
When it comes to running a small business, you need to make sure you have the right insurance coverage to cover your level of risk and meet any legal obligations. Reach out to a commercial insurance agency like United Counties Insurance Group to see what your business needs.