Opening a new business can be exciting and daunting at the same time. One of the most important parts is ensuring you have adequate insurance coverage to meet your needs. Here are a few common questions most people have about purchasing business insurance.
What Type of Business Insurance Am I Buying?
The needs of your company dictate exactly what type of business insurance you need to buy. Since you'll have a lot of different policies to choose from, you'll need to work with your insurance agent to determine the appropriate coverage.
The most common types of coverage include:
- Property coverage
- Liability insurance
- Business interruption coverage
- Workers’ compensation insurance
But, that's not all the protection you need. If you have vehicles, you also want a solid commercial auto insurance policy. Those in the certain service industries might additionally require an umbrella policy for liability coverage or a professional liability policy.
What Exclusions Apply to My Policy?
Not all policies cover every hazard. The answer to this question depends on a variety of factors. However, certain things like flooding or terrorism-related damage on a property insurance policy are usually never covered. There are also certain industry-specific omitted aspects or those that need a specific endorsement for total protection.
Having a chat with your business insurance agent regarding your needs and the exact wording of your policy contract is the easiest way to determine what applies to you.
How Much Business Insurance Do I Need?
Again, this is another question that really depends on your company and the industry in which you operate. In certain cases, you might even need a specific level of coverage to meet the requirements of your clients, especially if you regularly work as a contractor for large corporations.
However, a good rule of thumb is to have a solid liability policy and property coverage at a minimum. Your business insurance agent can help determine the right financial limits for your needs.
What Other Types of Insurance Should I Consider?
Different niche industries require additional business insurance policies. Certain types include errors and omissions, professional liability insurance specific to your industry, cyber liability insurance, and employee dishonesty coverage. A quick conversation with your agent should help determine which make a good addition to your existing policies.
Of course, these are just a few of the questions many people have when purchasing business insurance. For more information, contact your local agent to schedule a discussion today.