Deciding how to get commercial insurance can be a huge pain. Therefore, there isn’t one small commercial insurance policy that covers everything a business owner needs. Also, when it comes to insuring your business, factors like your location, industry, and the number of employees can all affect what coverage is applicable. Hence, you have to cover vehicles, property, and people, including customers and employees. In other words, this article helps you to gain knowledge on how to get a commercial insurance policy.
Steps to efficiently ensure your small business Insurance
A. Assess Your Risks
Buying small commercial insurance starts with knowing what insurance is needed. And every business comes with a certain amount of risk. Hence, some of these potential hazards can destroy a business while others can cause serious damage that can be costly and time-consuming to repair. Here are some of the risks to evaluate when buying commercial insurance for your business:
- Third-party accidents: Slip and fall injuries and damage to clients’ property
- Business property loss: Fire, theft, vandalism, equipment breakdown
- Company shutdown: Natural disaster, emergency business closure, and data breaches
- Professional duty errors: Medical malpractice, Professional service mistakes, and security breach
- Auto accidents: Vehicle damage, business property loss, and injury to employees or others
- Medical expenses: Covers employees injury while performing their job
B. Determine What Insurance You Need
A small business may have multiple policies to cover different types of risk. Each business has unique needs. Therefore, each business has different types of commercial insurance policy that provides different types of coverage. Hence, from liability insurance to property insurance, here are the basic types of small commercial insurance:
1. Commercial General Liability Insurance
Commercial General Liability Insurance is a must-have for any business. In other words, this policy will cover those accidents or damages that occur on-site or as a result of using goods or services sold by the company. In addition, coverage is designed to cover the cost of defending against a lawsuit.
2. Workers’ compensation insurance
Workers’ compensation insurance is a state-mandated insurance that provides medical care. And compensation for lost income to employees injured on the job or while performing work-related duties. Moreover, it also provides death benefits to surviving spouses and dependents.
3. Commercial Auto Insurance
Commercial Auto Insurance is a type of commercial insurance that covers a variety of vehicles. Also, it referred to as commercial car insurance, truck insurance, or fleet insurance. Hence, coverage includes third-party liability for property damage and bodily injury. But, policies can also include first-party coverage such as medical payments.
4. Business Interruption Insurance
Business Interruption Insurance is often a key component of a company’s business continuity plan. Hence, it replaces business income lost as a result of an event that interrupts the operations of the business. Specifically, if it is due to disaster-related damage that is covered under your property insurance policy.
5. Business Property Insurance coverage
Business Property Insurance coverage protects your company’s physical assets like buildings, inventory, equipment, tools and more. Hence, It helps to pay for the repair or replace your building and business property damaged by a fire, storm, or other event covered by the policy.
6. Errors & Omissions (E&O) Insurance
Errors & Omissions (E&O) Insurance (also known as Professional Liability insurance) is a form of liability coverage that protects your business from claims of professional negligence such as mistakes and negligence. Hence, E&O policies usually cover attorney’s fees, court costs, and any liability judgment, though a policy may not cover the entire settlement if the amount exceeds the limit specified in the insurance contract.
7. Commercial Umbrella Insurance
Commercial Umbrella Insurance is intended to pick up where your general liability, commercial auto or Employer’s Liability policies are not sufficient to pay for damages. Also, it provides extra coverage against bodily injury and/or property damage. In other words, without the proper umbrella coverage, business owners may have to pay out of pocket for lawsuits, medical expenses or other damages that their current policy doesn’t cover.
Shop around and get a quote
Getting an accurate small commercial insurance quote shouldn’t be difficult, Business Insurance California offers multiple business insurance quotes from the best commercial insurance companies. Hence, having multiple commercial insurance quotes allow you to find the cheapest small business insurance in the market.
Reassess every year /
Make Sure Your Insurance Policy Stays Current
As your business grows, so do your liabilities. A lot can change in a year. Insurance renewal time is an opportunity for business owners to save money and reassess their insurance policy and coverage needs. Hence, commercial insurance needs may have changed, you may qualify for new discounts, and insurance rates may be lower with other insurance companies. Moreover, a quick reassessment of your business at a policy-renewal time will allow you to make any modifications necessary to match the current state of your business.
Ready to take action? Not sure where to start? We’ve got you covered. Surely, you probably have a lot of questions surrounding what specific risks different types of coverage actually protect against, and whether or not they apply to your business. Above all, learn more about the different ways you can secure your business, contact us at (844) 234-5600.