You purchase insurance for yourself, your house, and your car—it’s only right that you protect your business as well. Though the costs of protecting a business that’s barely off the ground can seem expensive to new entrepreneurs, insurance will protect the company against legal action fees and destructive occurrences such as fires and other natural calamities. Here’s what you must consider in finding suitable business insurance.
Decide on the type of insurance you need
You can choose to purchase more than one insurance type to expand the coverage for your business. There are several types to choose from, such as general liability insurance for protection against property damage and product liability insurance for design flaws or defects that may endanger customers.
Property insurance protects you from theft, vandalism, and significant repairs due to natural disasters. On the other hand, business interruption insurance provides financial assistance if your company suffers a loss of income after a natural disaster. Company transportation is also qualified for vehicle insurance.
There’s also key person insurance to keep the business going despite an unexpected departure of an executive. Finally, worker’s compensation is legally mandated insurance that pays employees in the event of a work-related injury. The application requirements for each type of coverage, especially for workers’ compensation, vary per state.
Evaluate the risk
Your business can handle difficult situations during its infancy. However, as the operations expand, it’s imperative to get covered against adversity. Consult with various business insurance agents about the impending risks you are facing, and they will be able to help identify other unforeseen red flags.
The organizational structure is a determining factor in identifying the risks involved in the company. Solo proprietors are directly liable for damage and worker’s compensation, while corporations are prone to product liabilities that lead to lawsuits.
Review case studies of similar companies to help you in determining which insurance types you will need and when the policies come in handy. Read as many studies possible before making the decision. Talking to other business owners and gathering their input is smart as well, especially when you have additional questions.
Consulting with a commercial lawyer will help you gain valuable insight regarding the common lawsuits that businesses receive. The wisdom you’ll gain from them gives you an idea of the potential liabilities against the company and the insurance types you must have to manage the risks.
Finally, you’ll have to assess how much risk you are willing to take. Remember—prevention is better than cure. It is better for you to obtain business insurance and not use it than not have it at all when you need coverage. Customizing policies can help you save money on plans you need least while increasing payments for the ones that directly affect profit.
Semel Risk Consultants understand that companies have different insurance needs. Online stores require different policies than what an auto repair shop needs. They are also aware that contrasting coverages apply to similar businesses that cater to different markets.
Because of this, Semel Risk Consultants offers an array of insurance plans for your industry or location. Aside from the typical worker’s compensation, manufacturers may choose business interruption and equipment breakdown while e-commerce websites will choose cybersecurity insurance. You can also add policies for general liability, property insurance, and crime insurance.
If you’re looking for small business insurance in Las Vegas, get in touch with us today to see how we can help!
