As a business owner, you want to protect your company with adequate insurance protection without spending money on policies that may not be relevant to your needs. Selecting and buying the appropriate commercial business insurance for your operation may require a little analysis to come up with the plan that suits you best. Take some time to map out an outline to help you and your agent build the right coverage.
Step One: Assess Risk
Not all companies require the same types of liability coverage. Start with the product or service your business provides and go from there. Does the product or service involve any unusual operating procedures or conditions? Draw up a list of points to consider:
- Areas of potential loss, such as theft
- Potential frequency and severity of loss
- Chance of injury
Know Your Requirements
Individual states may have different requirements for commercial business insurance coverage. Some businesses may need to include professional liability in their portfolios, such as medical practices and real estate agencies. Geography and climate may play a role as well. While it may not be strictly necessary to buy coverage for certain damages caused by weather, you may wish to do so if you feel your business is at risk.
Do an Annual Survey
It is a good idea to revisit your insurance coverage with your agent once a year. In this way you may be sure that you are staying competitive while getting the commercial business insurance protection you need.