Business Insurance: The Questions You Should Ask

As a business owner, you’re strapped for time and have a lot on your plate. However, if you care about the long-term viability of your company you need to make time to understand your insurance needs. Here are some common questions and answers to set you up on the path to the right business insurance coverage and success.

How to Choose the Right Business Insurance

Question: What type of business insurance policies should I consider?
Answer: There are several types of insurance, although some will not pertain to your business and some will.

1. Business interruption insurance:

Pays business expenses and replaces loss of income if an accident, storm or power outage prevents you from doing your business.

2. General Liability Insurance:

Covers your business and employees if you are involved in a claim or lawsuit – for example, if you damage your customers property or if someone slips and falls in the water you created.

3. Property Insurance:

Covers your physical location and onsite furniture, supplies, inventory, etc., from damage due to fire, theft, etc.

4. Inland Marine Insurance:

Covers your mobile equipment for fire, theft, vandalism.

5. Umbrella Insurance:

Protects your business in the event of a catastrophic loss, providing additional coverage over your standard general liability policy.

Question: How much coverage do I need?
Answer: It depends. Coverage needs and limits depend on a number of factors, including your specific industry and the size of your business. To figure how much coverage you need, you need to answer questions such as:

How much money does it take to run my business daily?

What’s the value of my business, both in revenue and in property?

What can I afford – not just in premiums, but in coverage gaps?

How much can I afford to pay out of pocket if my policy leaves me underinsured?

What is my liability exposure?

What would I do if I damaged someones properly or if someone was injured due to my work?

What’s the worst that could happen? Even if my employees don’t operate dangerous heavy equipment, what would I do if one of them suffered an accident? What if my business location or equipment was destroyed in a fire or stolen?

If you’re feeling unsure about what you need, an independent agent can help you determine what is most appropriate for your business, and will present you with options that fit your needs and budget. At the end of the day, you have to be comfortable with your coverage and confident that you will be able to carry on no matter what occurs.

How do I Choose the right Insurance Partners?

In addition to ensuring that you have the right coverage, you’ll want to determine whether the agent and insurer you are working with are good matches for your business, industry, and needs. Here are some questions to ask in the vetting process:

Question: What experience do you have with business of my kind?
Answer: Some providers specialize in or offer specialized insurance packages for particular industries. Ask your agent how many clients he or she has in your specific industry? Do they have a package that is tailored for your type of business? How familiar is the agent with the type of service that you offer?

Question: How do I make a claim?
Answer: In a stressful situation or following an accident, you don’t want to be confused or unprepared. While you will have to contact your insurance provider directly to make a claim, your agent should be able to offer tips on expediting the process

The key is asking plenty of questions and answering theirs. Make time to have an open conversation that leaves no stone unturned and no risk uncovered – it could mean the difference between continued success and closing your doors. Call us today at 1-800-878-3808 for a free quote or policy review to save on the right insurance for your business. We’ve specialized exclusively in the mobile cleaning industry for 40 years and know what you need to protect your business property!

One comment on “Business Insurance: The Questions You Should Ask

  1. I didn’t know that property insurance could cover supplies. Getting the right insurance for your business seems like it is extremely important. Hopefully, any business owner that wants to protect his business looks into finding the best insurance possible.

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