Business Insurance Planning 101
Business insurance exists to help your business offset the costs of catastrophic events that threaten continued operations. However, many business owners aren’t familiar with the different types of insurance protections available. Oftentimes, instead of speaking with their insurance agent about potential risks, they leave their businesses vulnerable to unknown events that can possibly shut their business down.
If you are a business owner, it’s important that you examine your business to ensure you have all risks covered. Don’t know where to start? Keep reading to determine what business insurance planning entails.
Research Mandatory Insurance Coverage Options for Your Business
Most states require some businesses to have certain types of insurance. By researching your industry and state laws, you can determine what types of business insurance are required. For instance, companies that use vehicles to transact business will need commercial auto insurance in order to drive legally. Additionally, many states require businesses to cover their employees with workers compensation insurance in the event of an on-the-job injury.
Purchasing business insurance to remain compliant is a great starting point for many businesses, but it’s not enough for comprehensive financial protection for your business.
Assess Potential Risks to Your Business
Every business faces risks that are unique to their industry. Risks are unknown factors that can cost businesses financially. Since every business owner wants to keep costs down, it is imperative that they reduce the number of risks that threaten their business.
For each risk identified, business owners can examine the potential financial loss associated with the risk. By doing so, they form an idea of how much business insurance will be required to protect against these risks.
Find Insurance to Mitigate Financial Losses
After identifying potential risks, it’s time to match them with insurance policies. For instance, lawsuits associated with libel or defamation may be covered by a general liability insurance policy or an umbrella insurance policy. Additionally, you can reduce the financial impact of losing a strategic business partner by purchasing key person insurance. There are many insurance products available to protect your business from financial loss, including:
· Directors and officers insurance
· Commercial property insurance
· Data breach insurance
· And more
With each policy, you increase your business’ chances of survival.
We’ll help cover your risks. Call Blackmore-Rowe Insurance at 800-282-9766 for more information on Byron Business Insurance.