Business owners face unique challenges, and they must face them while still handling day-to-day operations. In the article below, you’ll learn how to assess your business’ insurance needs, and how to buy the coverage you need to minimize risk and adequately protect yourself.
- Assess your level of risk: Insurers determine an acceptable level of risk in a process called underwriting. The company reads your application and determines the level of coverage they will offer. Every policy has a deductible and a premium, which can vary depending on your building type, location, and policy size. The higher your deductible, the more you’ll pay out of pocket if you make a claim. It’s important to honestly assess your risk before Shopping for Business Insurance in Canton, MI.
- Comparison shop: The NFIB (National Federation of Independent Businesses) provides tips that help you assess risk and adequately cover your business. Coverage cost and extent varies by company; some specialize in a specific type of business, while others carry Homeowner’s Insurance and policies for other needs. In many cases, specialized insurers can help you get the best coverage at the best rate.
- Buy a BOP: You can buy insurance separately, or as part of a business owner’s package. Buying policies from multiple insurers can result in a higher monthly premium, but a BOP combines all these options into a package that costs less. A BOP typically consists of coverage for liability, property, vehicles and business interruption, and they simplify the process while saving you money. However, they do come with some exclusions.
- Find a local, reliable agent: A business insurance agent can help you find coverage that meets the needs of your business. Brokers get commissions every time the sell a policy, and it’s important that you find an agent that has your best interests in mind.
As your business’ needs grow and change, your liabilities do as well. Things can go wrong at any time, and being caught without the right coverage can mean financial ruin. If you have upgraded equipment or expanded your operational base, you should consult your insurer to discuss the changes and how they can affect your insurance needs.
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