Choosing the right commercial insurance policies for a small business, and then paying the monthly premiums, is not the favorite task of any business owner.
However, having the right insurance in place is a hugely important aspect of risk management for any small business, customers, vendors and employees are all counting on it.
Under commercial insurance, look for coverage of assets such as property, machinery and equipment, as well as inventory. This seems like a bit of a no-brainer and a minimum requirement, but you would be surprised at how little time small business owners spend reviewing their policies before they renew.
Within this type of property insurance coverage, be sure to include, as part of inventory value, goods in transit. Adding this will protect inventory that you own but is not in your facilities, such as incoming goods or finished goods. It is way more economical to do this than to pay each carriers insurance for each shipment.
Also under property insurance, you should add tools that may be used off your premises if you have service technicians on the road. Their tools and parts are not usually covered by the commercial auto insurance that protects the company vehicle they may be using.
Another type of coverage you may not have considered is crime insurance. This can cover your business for employee theft, forgery, burglary, and electronic fraud. You’ll have to make your own assessment of whether these are risks worth insuring in your type and size of business.
Next is an obvious one: general liability. This is the most common and typically most affordable type of insurance, and will cover injuries to employees, customers or suppliers while on your premises. It can also cover injuries or damage as a result of negligence on behalf of you or your employees, off your premises.
A much overlooked coverage type: business interruption insurance. This covers your fixed expenses, payroll and profits if your business is shut down because of property damage or an event that makes continued operation impossible. This is insurance gives great peace of mind.
Investigate the types of business insurance coverage your business needs to give you peace of mind.
Just as important, be sure to have fresh quotes for your plans every year or so to make sure that your broker is remaining cost-competitive.
Fine-tuning your insurance coverage is a very important responsibility for both risk management and cost control. Contact TriState Business Insurance for more information.
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