Whether you're starting a new venture or running a well established company, you have a myriad of responsibilities as a business owner. One of these is to ensure your company has adequate business insurance.
Like many business owners, you may be an expert in your industry but know little about insurance. Buying the right coverage requires some skill, and mistakes are easy to make. Some errors may be minor, but others can have serious consequences. Our team is here to make sure these things never happen and you have the support you need but here are some tips to help you through the process of buying insurance for your company.
The cheapest policy isn't always the best policy
When buying business insurance, it makes sense to shop around since some insurers provide better value than others (we do this for you). This does not mean you should always choose the cheapest policy. The policy that costs the least may leave you with coverage gaps that may leave you vulnerable to costly claims.
Make sure you have enough liability insurance
Virtually any business can be hit with a lawsuit, which can vary widely in costs. A legal action can threaten your company's financial stability and harm its reputation. One large claim can even put your company out of business. To protect your business against lawsuits, don't skimp on limits when buying general liability or professional liability.
Does your company perform work or services for other businesses under a contract? Those businesses may prohibit you from starting work until you provide proof of liability insurance. The amount of insurance you must purchase is typically stated in the contract. Similarly, a landlord may refuse to lease property to you unless your business has purchased liability insurance.
As your business changes, so should your insurance
Most businesses change over time. Small companies may grow, adding locations and hiring additional employees. Some businesses may change the mix of products or services they offer. When businesses change, their insurance needs change as well.
If you have made a major change to your business, like acquiring a new company or location, you need to work with your broker to reflect those changes. All other changes should be reported before your policies renew. As your broker, we can help you decide whether your insurance coverages or limits should be adjusted.
More questions about business insurance?
Our team is here to help at every step along the way. Your business is unique, make sure you have an insurance policy that reflects that. Chat with us.
