When shopping for business insurance, you might be wondering about the coverage you need. Of course, you are looking for something affordable to save money. But how do you know whether coverage is necessary?
First, you’ll need a trustworthy insurance agent. Your current agent may offer an insurance package that will meet most of your needs. But before you buy into that, here are three things you need to consider.
Decide on the coverage you’ll need.
There are certain types of business that need specialized coverage. For example, an accounting firm needs more professional liability coverage to protect them from the costs of having to defend against a negligence claim.
Determine whether you need Employment Practices Liability Insurance. This coverage protects you from claims of violating other people’s civil rights. A company with several directors or high-ranking officers should consider getting Directors and Officers Liability Insurance. It protects them from claims of ignoring the rights of others under their management.
Also, consider the need for Business Identity Insurance that protects your company when a client experiences data theft. Each business is unique. So, know the needs of your business to determine which coverage you should get.
Evaluate your risks.
Insurance agents will evaluate the risks their carrier will face if they accept you as a client. Thus, they will have to conduct a review of your application. Doing so will let them determine how much coverage their company can provide you.
When they grant your application, your policy will then have a premium and a deductible. Your premium is calculated based on certain factors like location, type of coverage, building type, and local fire protection services in the area. Deductibles also vary. Higher deductibles mean you’ll have lower premiums, but you’ll have to pay more yourself when you file a claim.
As your business grows, it is vital that you assess your liabilities annually. It is not a good idea not to have coverage when a disaster happens. Contact your agent if you’ve expanded operations or added equipment.
Consider getting umbrella coverage.
Umbrella coverage protects your business above other liability coverage you have. It covers expensive claims that have exceeded the limits of certain coverage.
If you’re not sure about the abovementioned considerations, feel free to talk to one of our agents. Here at Wellcovered Insurance, we will help you find an insurance policy based on your unique needs and risks. Contact us at (386) 218-4951 or send us an email. Get a free online quote today!