Businesses are subject to many of the same insurance risks as homes, and then some. Following a mishap, some business owners are surprised to find their small business insurance policies are inadequate. Studies show a number of small businesses carry insurance policies lacking complete coverage. The kicker is that often, the business owners find out only after filing a claim, leaving costs up to them.
Looking at a city street, a small business can mean anything from a cafe to a boutique, to a bottle shop and much more. Tailoring an insurance policy for the right coverage while excluding the rest pays off. Insurance is a many-layered cake. To get the best insurance coverage it’s recommended you speak to an agent but in the meantime, knowing the basics of business insurance can pay dividends.
Understanding the Risks
The list of potential insurance risks for a small business is lengthy. The type of business, location, and so much more affect risks businesses face. For some businesses, there are specific insurance requirements mandated by law. For others, the potential for risks calls for additional insurance protection. The same insurance policy for a bakery will be an awkward match for a yoga studio. The right insurance coverage will be ready to respond, should a claim occur.
Tailoring an insurance policy, factors which may affect levels of coverage include:
- Food and beverage service
- Customer presence
- Pollution footprint
- Public advertising
- Transportation risks and more.
An entrepreneur knows their business best. For questions about coverage, ask. An agent can help determine gaps in coverage and create bridges with comprehensive insurance. Preparation ahead of time helps secure a net of protection, allowing business to continue unhindered in case of claims.
Getting a Business Insured
Ask 4 people for the right time to get business insurance and you may receive 5 different answers. Many entrepreneurs are unsure on the right time to get insurance while starting, or making changes to a business. The most common times to start, bolster, or change a business insurance policy include:
- Launching a business. Before opening the doors, obtaining adequate insurance is an important part of launching a business. From home-based operations to retail storefronts, insurance helps protect the owner and community from the unexpected. It may be possible to bundle several types of coverage into a single policy for additional savings and ease of management.
- Renting Space. Leasing a physical space adds insurance requirements and compounds risks. Often, property agents want proof of insurance before signing a lease. Prepare with the right policy beforehand.
- Adding staff. Managing staff and volunteers can add to insurance demands. Beyond liability protection health, disability, and other insurance options are available. Speak to an agent and be ready to add to the team.
- Announcing new products. New products can create risks for consumers, as well as their accompanying advertisements. Before launch day, check with an insurance agent.
- Implementing a Board. Utilizing a board of directors is necessary for some companies and a choice for others. Directors help steer the direction of companies and organizations, yet they are human after all. If a director errs in their decision making, Directors and Officers Insurance can mitigate any legal fallout.
The best time to review an insurance policy is before it’s needed. Get protection early and respond to changes with the help of an experienced insurance agent. A local agent can help identify risks unique to the area, and help uncover risks specific to a small business or industry. Always keep insurance policy documents secure and readily accessible. For more on commercial insurance protection for small businesses, or for answers to insurance questions, call an agent today.