Purchasing commercial insurance for your business- no matter the size- is an important practice. Having a solid commercial insurance policy can cover you from liability in the case of injuries, malpractice, theft, property damage and much more. Dependent on your business structure, you will need different levels of coverage. Here are some basics to weigh in when you are considering how much commercial insurance to purchase for your business:
Research the types of policies you need for your specific business– As a doctor, you will need medical malpractice insurance. As a labor company, you would be required to have worker’s compensation to cover any employees getting injured on the job. The structure of your business will determine what kind of policies you need, which will determine the amounts that you should purchase. Base your insurance policy simply on your needs so that you don’t over-insure.
Figure out your Assets to Determine Property Insurance Needs– The first thing that you need to do in order to figure out how much insurance to purchase is to list out your company assets. Assets will include any inventory that your business has, property and any equipment that you use. Property insurance can be determined based on the actual value of your property, so that you can buy the minimum policy that will work for your business size and current property.
Look into a Business Owners Commercial Insurance Policy- If you are a mid level business, purchasing a bundled Business Owner’s Policy (BOP) is recommended. A BOP will bundle coverage that includes major liability risks, property and income insurance in the event of the loss of income that is the result of a disaster such as a fire or a natural disaster. These policies will also typically cost much less than buying each level of commercial insurance separately.