Why Do I Need Commercial Insurance?
Does your current insurance cover what you need it to cover? This can be a tough question to answer. The insurance world is complicated, not always easy to understand, and the last thing you want to happen is to lose your business because of an insurance mistake. Before we can talk about why business insurance is so important, we have to define what business insurance is and how it works.
Business insurance protects your company’s property, assets, and income. When getting a business insurance quote, the insurance company is going to look at a lot of different factors to determine which kinds of business insurance you’ll need, and how much coverage you’ll need.
- How big is your company? Are you a startup or an established corporation?
- What industry are you in? Do you work in something like construction or food service?
- What do you need to protect (company vehicles, customer data, property, etc.)?
All of these things help the insurance company decide how much risk you pose, and your likelihood of filing a claim. They’ll ask you a lot of questions to determine what you want to be covered and from what. If you have company cars, you’ll need to consider commercial auto insurance. If you deal with a lot of sensitive data on computers, you’ll likely want cyber-liability insurance to protect against hacking or loss of data. These are all things a knowledgeable and experienced agency like Contractors Insurance Agency can help you with.
Types of Coverage to Consider
There are multiple types of coverage to consider for your business. You don’t necessarily need all of them, but it can’t hurt to look at each one individually and decide what applies to you and what doesn’t.
- General Liability Insurance – Protects against financial loss due to property damage, personal injury, etc. caused by your company or on your business’ property.
- Commercial Property Insurance – Covers loss of property (office, equipment, etc.) due to weather, theft, etc.
- Cyber Liability Insurance – Protects against loss of your customers’ sensitive data through hacking or other cybersecurity flaws.
- Employer Insurance – Covers things like worker’s compensation costs.
- Commercial Auto Insurance – Covers company vehicles against damage or loss.
Don’t Skimp On Insurance to Save Money
It can be tempting to skip over insurance in order to keep costs low, especially if you are just starting out. However, this can be a dangerous decision that could come back to hurt your business tremendously. Business insurance can protect against several issues that could arise, either because of something outside of your control or a mistake you make.
Commercial property insurance can protect you against loss of your property or equipment due to either theft or unintended damage like a storm or fire. On a different note, what if a customer is injured on your property or a product or service you sold them causes them harm? They could sue and certain types of liability insurance can help protect you against the costs associated with a lawsuit.
Are You Legally Required to Have Insurance?
Another thing to consider is the legal requirements in your state. Many states have specific laws mandating whether your business needs certain kinds of insurance. These are requirements your insurance agent should be able to help you with. If you aren’t following the laws in your state, this could also hurt your business.
Saving Money On Business Insurance
So while business insurance is so important to have, it can still be a cost that you are hesitant to pay for. But there are a couple of ways you can work to save money.
- Using an independent insurance agency like Contractors Insurance Agency can be helpful in saving money. Because we are independent, we have the capability of shopping around with several companies in order to help get you the best coverage at the most affordable rate for your business. Be sure to work closely with the agent you decide on and be transparent with them about all things relating to your business’ needs and insurance risks.
- A bundled policy can be an additional option to explore in order to save money. A lot of times there are Business Owner Policies that include common types of standard coverages that a small or medium sized business needs. By bundling all of your coverage with one company, rather than buying individual coverage for each type of liability, you can very often save money.
Contractors Insurance Agency Can Help
If you have questions about your current business insurance or are concerned about having the right coverage, Contractors Insurance Agency can help. As our name implies, we specialize in helping contractors properly insure and protect their businesses. Aiming to provide the best coverage at the best rates, we’ve got several satisfied clients. We’ve also got plenty of other content on our blog, discussing everything from workplace safety to filing an insurance claim.