Questions To Ask Your Business Insurance Agent

Questions To Ask Your Business Insurance Agent

Business insurance is a must-have if you want to protect your venture from any catastrophic event that could strike anytime. It is your cushion from loss, mishap or lawsuit and will keep you afloat during hard times. It keeps your assets safe and protects your acquired assets when business hits bottom. As an entrepreneur, you do not want your financial investment gone all of a sudden.

To know which type of policy is appropriate for your business, getting information from agents of various insurance companies in your area is the first step. Once you find the right agent, he will be your partner-adviser as you go through the process of choosing a policy that offers optimum coverage.

Five critical questions you must ask your business insurance agent:

What is the right insurance for my business?

Every business needs different coverage protection. It is necessary to study each type of insurance to get adequate protection.

Property and casualty insurance – provides coverage for physical property in case of flood, fire and theft.

Liability insurance – mitigates potential financial loss when someone sues your company for negligence.

Workers’ compensation insurance – mandatory insurance to protect injured employees

Product liability insurance – pays for the damages that your product caused.

Commercial auto insurance – pays for any accident that damage your vehicle or cause harm to others during business.

Life and disability insurance – provides a fund for the owner, employee or business partners in case of disability or death.

Health insurance – covers a portion of your employees’ medical services fee as well as yours.

Business interruption insurance – provides a fund to cover profit loss and cash flow during the time that your business operation has stopped.

Professional liability insurance (Errors & Omissions insurance) – covers the damage due to an error during professional consultation or omission of facts that caused harm to clients.

When is the right time to get business insurance?

The best answer is as soon as you open your business. You need to protect your investment and yourself from potential hazard or liability. If you employ people, it is mandatory for employers to secure workers’ compensation insurance within the first month of operation.

What are the salient features of insurance policy that I need to understand?

Every insurance company has unique policy package. Study the scope of coverage, the limitations, the nature of liability limitations, the benefits and the premium. Ask your agent to give you pointers on how to file claims.

What is the government’s required insurance?

To secure a business license from any state, you are required to get general liability insurance with minimum coverage. It is up to you to upgrade the policy if you want broader protection or retain what you already have. Other types include workers’ compensation insurance, unemployment insurance and health insurance.

How can I reduce my premium payments?

Many insurance firms offer lower or discounted premium if you get a comprehensive insurance policy or get bundled package. The size and structure type of business are also determining factors. Other cost-cutting measures are hiring a risk manager, employee training, fire safety precautions and sound security system.

As the cliche says, preparation is the best protection!

Why Do I Need A Business Insurance?

Why Do I Need A Business Insurance?

Starting a business a huge commitment and is quite a risky matter. Most entrepreneurs are more focused on raising funds, creating effective marketing strategies and it’s essential to assure that everything is well taken care of.

Business insurance is one of the things that’s need to look out for before starting up a business. You have a lot of things to consider and check before you can make a wise decision. The outcome of not having a firm insurance policy should on the top of any entrepreneur’s initial to-do list.

Here are some reasons to consider why you need business insurance.

It’s the Law

The law requires businesses to give certain types of insurance to their employees such as unemployment, disability, and workers compensation; it depends on the state where the business place is.

Failure to sustain command legally would result in penalties, fines, and exclusion from public contracts.

Keeps Your Business Running

What will happen to your business if natural calamities occur? What will you do about the loss of money during your business closed?

That’s where Business Owner Policy plays the critical role; this will help a business survive after a severe disaster by protecting from loss of income.

Human Assets Protector

As an owner, you need to keep the business up and running. But what if you suddenly you had serious accidents or some unfortunate circumstances that take you out of your business for years?

Company-owned life and disability insurance coverage give payments to cover the income you cause. It also offers funds for the acquire of your interest under a buy-sell agreement.

Attract and Retain Employee

Having insurance can have the positive benefit of attracting and retaining qualified employees. Aside from salary, job hunters look for benefits packages that cover health, life, and long-term care insurance. To avoid losing the right employees in your company, you should offer this kind of perks.

Gives You Credibility

Having business insurance makes you look credible. This will show your potential clients that you’re a safe bet. It would be easier for you to compensate if anything goes wrong with the work you do for them.

This is most probably the reason home services companies carry statement “licensed, bonded and insured” on their signage and trucks. This will help build trust, the currency of a modern-day economy.

You Could Get Sued

We are living a contentious community. When lawsuit or liability claim happens, without insurance, your business could bend. One dissatisfied employee, one accident everything will be over. Liability insurance can help you enable to concentrate on what truly matters and will give you peace of mind.

Employee Protection

You might be thinking that your most valuable asset is your services or products that you offer but it’s not. Your employees are your most valuable assets, and it will also pay to protect them an from an accident. Protecting your employees’ interest is also an excellent way to protect you from lawsuits and liability claims.

As you can see, there is a lot of reason to invest in business insurance. To put this simple, protecting what you’ve built and invested in should be enough reason, right?

What Does A Business Insurance Cover?

What Does A Business Insurance Cover?

We never know what the future holds, so it is always best to be prepared. Getting business insurance is probably the best investment that you can do for your business.

According to The Hartford, “business insurance can help pay the costs of property damage, lawsuits, lost business income, and other covered losses”.

Often, businesses will buy multiple coverages and combine several in one policy to protect themselves against specific risks that are unique to their situation.

A Business Owner’s Policy or BOP is among the most popular business policies and includes business property, general liability and business income coverages in one policy.

Chron also advises determining the type of insurance coverage needed to minimize any potential risks to the businesses.

Don’t know where to start? Here are some of the essential business insurance coverage options:

Business property insurance

This will help protect your business’s buildings and personal property. It might include furniture, tools, equipment and inventory.

Business income insurance

Helps replace lost income if you close temporarily due to a covered loss like theft or property damage from a fire. It can also help you continue paying expenses while your property is replaced or repaired.

Professional liability insurance

Liability insurance will help cover costs related to claims that your business made errors in providing its services.

For example, if you make a clerical error and it causes a client to lose thousands of dollars, professional liability insurance can help cover the costs if the client makes a claim. A business doesn’t need to do anything wrong to be sued.

Depending on the scenario, coverage would apply to defend a business if sued.

Workers’ compensation insurance

Compensation insurance helps cover costs to employees while they are unable to work after suffering a work-related injury or illness.

A commercial auto policy

This policy helps protect your business from the costs of a work-related auto accident. If you or an employee is in a crash while driving for business reasons, commercial auto can help cover the costs that result from the accident.

Commercial umbrella insurance

This add-on insurance acts as a safety net that provides additional coverage when other liability policies reach their limits. For example, say a customer slips and injures himself in your store. He then makes a claim against your business for $200,000.

If your general liability policy has a limit of $150,000, commercial umbrella insurance will help cover the remaining $50,000. Businesses find this coverage is essential for helping protect against financially devastating lawsuits and claims.

Data breach insurance

This kind of insurance will help protect your business from the costs of cyber threats or attacks.

Commercial flood insurance

This insurance helps protect your business from the costs of covered flood damage. This includes damage to the physical location of your business as well as its assets. For example, say melting snow floods the basement of your business. The floodwater damages the floor and some tools. If this happens, commercial flood insurance can help cover the cost to repair the damaged floor and appliances.

Employment practices liability

[EPL] helps protect your business if an employee sues you. Even if you are not at fault, defending a lawsuit can be costly. Employees may make a claim against your company for reasons such as discrimination, harassment or wrongful termination. If they do, EPL can help cover the related costs.

Risk engineering

Risk engineering professionals evaluate your business’s risk exposures and then create improvement plans, and programs to train you and your staff to safely handle accidents and follow safety protocols. This can result in a safer, more productive and profitable business.

Multinational insurance

This insurance can help streamline coverages if your business has operations outside the U.S.

Surety & fidelity bonds

A surety bond is a contract between three parties that help ensure a project gets completed or a commitment is met and guarantees payment if they are not. Fidelity bonds are a form of insurance that protects businesses from financial loss due to employee theft or fraud.

Home-based business insurance

Home-based insurance helps cover the costs of property and liability risks to businesses that operate out of a business owner’s home. If you keep supplies, equipment or other business property at your home, or have customers stopping by, consider adding this coverage.

Chron also listed Commercial Liability Insurance which covers claims against the business by third parties. The claims generally stem from accidents that occur on the business premises or injuries to third parties for which the company becomes legally liable.

The business owner must be legally responsible for the injury, typically depending on the location of the accident. In addition to insurance coverage for injuries to third parties, commercial liability policies may cover damage to the property and company products and may provide independent contractor coverage.

Standard business insurance policies don’t cover everything, but it is possible to add coverage riders to standard procedures to help cover additional risks.