Press "Enter" to skip to content

Posts published in “Business Owner’s Policy”

Auto Added by WPeMatico

7 items to consider before you buy business insurance

Entrepreneurs need to take several important first steps before starting their own small business, including writing a business plan, obtaining financing, and buying insurance. However, as they begin looking for small business insurance, business owners may be confused by the sheer number of options. It can be overwhelming, especially for those who’ve never purchased coverage before. Here are seven tips to keep in mind while shopping for business insurance. They will help you meet legal requirements, minimize your exposure to risk, and save you money. 1. Understand your legal obligations Not everyone is required to purchase insurance for their small business, but some are, depending on their industry, state laws, or other requirements. For example, if a business owner is renting a commercial space, the landlord might require general liability insurance, which can protect against the costs associated with third-party property damage or injuries. Depending on which state they work in, business owners with employees may be required to purchase workers’ compensation insurance. Business owners should research the legal obligations for their area and industry to ensure they have proper coverage. An experienced insurance agent can help advise them on the coverage they are likely to need. 2. Know your industry’s risks Every industry is different, and so are the risks that a small business owner might face. For example, an accountant needs to worry about being sued if a mistake is made filing a customer’s tax return, while a restaurant owner should be more concerned about a customer becoming sick after eating a meal at the restaurant. Professional liability insurance can protect accountants and other experts from lawsuits related to errors they make in their professional capacity, while product liability insurance can pay a restaurant’s legal bills if customers become ill or suffer an allergic reaction because of the food they consumed. By carefully evaluating the risks they are most likely to experience in their industry, business owners can ensure they are purchasing the appropriate coverage to protect their business. 3. Prioritize coverage over business insurance cost Once business owners know which policies they need, their next question is…

Cookies help us deliver our services. By using our services, you agree to our use of cookies. More Info | Close