Don’t Think You Need Business Insurance? Read this First!

If you’re a business owner, you know that there are real costs and risks associated with doing business. Just one unfortunate event like a fire or theft could be enough to put you into bankruptcy – that is, if you’re not insured properly.

If you’re tempted to cut business insurance out of your budget, you could be putting your livelihood at great risk. The investment you make in insuring your business completely is more than returned to you if you use it just once. Plus, the peace of mind is priceless for a business owner who has many other matters weighing on their mind.

Before you buy – or deny – business insurance, read these five points first!

Know the cost of insurance before you begin your business.

If you are considering starting a new business, get commercial insurance estimates prior to taking the entrepreneurial leap. You might find the cost of fully insuring your risks makes your business less profitable than is worthwhile. Additionally, if you go without insurance for a period of time, it’s often then very difficult to find an insurance company that will take you later on. The five major areas of insurance to shop for are: property insurance, general liability insurance, professional liability insurance, commercial automobile, and workers compensation. Many times these are bundled together to offer a cost savings and efficiency.

Insure your risk completely.

If you are a retail location, make sure you estimate your business personal property correctly. In case of a fire, where just about everything is destroyed, your insurance needs to fully cover everything you will need to purchase or repair in order to again open your doors for business. If your coverage falls short, and you are unable to restart your business, you’re nearly in as bad of a position as if you had no insurance at all.

Know the age of the building you buy or rent.

This may seem like a small detail, but it’s an important one. The age of a building impacts the cost and coverage of your commercial insurance, even for a renter. If the age of your building works in your favor to save you money, you want to take advantage of this! And even if it doesn’t necessarily reduce your cost of insurance, you will be sure that you are fully and accurately covered, which is extremely important.

If you are a contractor, insure your tools.

One critical error that is commonly made, is that contractors will insure their truck, but fail to insure the individual tools inside the truck. If the truck is stolen or damaged, resulting in lost or damaged tools, you’ll have to pay out of pocket to replace all of these – if you fail to insure them! Just because they are stored in an insured truck, this doesn’t mean they are covered. It’s not just contractors that have tools though!  You may own other types of tools or supplies that aren’t immediately covered as well!

Insure your digital information.

Finally, and so importantly in this digital age, make sure you have some form of cyber theft and cyber liability coverage to help protect you financially if you are hacked and you or your customers’ information is stolen. Many businesses operate completely virtually, meaning their main assets are the information they store in a cloud or on their computers. As hackers continue to grow more and more sophisticated in their tactics, sensitive and valuable information created by your business could be here today and gone tomorrow. Without insurance, this could be a business-ending scenario!

What other questions do you have about business insurance? Leave a comment!