Most entrepreneurs and new business owners will invest in at least minimal coverage when they first start operating their companies. However, like homeowners and drivers, business owners may become complacent too quickly about the kind of coverage they have.
Frequent, if not annual, reviews of insurance coverage can benefit your business. Unfortunately, is easy to put off such reviews because you may want to avoid the hard sell so common with insurance agents. An attorney can also help you identify points of liability for your business and appropriate amounts of coverage.
If your company has grown or changed the kind of services or goods it provides, you may need to adjust the insurance you carry to reflect those changes.
There are many kinds of business coverage available
General business liability protection often isn’t enough. Do you provide guidance to clients as a real estate agent? If so, there is errors and omissions coverage that will protect you from claims that you gave bad advice or made a mistake on the sale paperwork that cost your clients thousands. If you produce physical products, you may need product liability coverage.
As you start hiring workers, you also need to look at what kind of workers’ compensation coverage you carry, as well as your premises liability coverage for visitors to your facilities. Business interruption insurance can also be crucial, as you never know when you may have to cease operations and face diminished revenue while still needing to pay the same monthly bills.
The right coverage will minimize your operational risks
Running a business means investing your time and money to create profit for yourself and any shareholders invested in your company. A lawsuit by an injured worker or a customer who claims the design of your most recent product was defective could devastate your business and even force you to close its doors.
The right insurance coverage will protect you by compensating individuals who claim your business caused them harm and by advocating on your behalf when settling those claims. Reviewing your current business insurance and identifying where you may not have enough coverage can protect you from the financial risks that come from doing business.