When you decide to embark on your own business, you potentially expose yourself,
your assets, your family — not to mention your business — to a variety of risks.
It’s important to learn about these risks, plan for them, and manage them before
an unfortunate event occurs. Business insurance planning helps to mitigate those
Adequate and appropriate insurance for your small business acts as a barrier between
an unforeseen incident and potential financial ruin for your business. But when
your insurance policy doesn’t meet the needs of your business, you leave yourself
and your business open to risks.
That’s why business insurance planning is so important. Defining your small business
needs and associated risks helps you and your business insurance company tailor
your policy to provide adequate coverage, while avoiding coverage you don’t need.
For example, it may not make sense for you to have earthquake coverage if your business
is in an area of low seismic activity.
Further, many small businesses change and develop as they grow; business activities
often become diversified and additional products and services are frequently offered
as the business expands. A good insurance policy will grow with your business as
it diversifies. In other words, conducting sound business insurance planning will
help ensure your policy evolves with you.
The small business insurance planning process embraces the need for taking a close
look at organization operations in order to make an informed decision about the
risks that are most likely to impact the business. While insurance needs vary substantially
from one small business to another, there are some types of insurance protection
that every business needs, no matter where it’s located or how small or large in
size it is.
Some essential standard business insurance coverages that are recommended for most
every small business, include
- Business Owners Insurance
- General Liability Insurance
- Package Policy Insurance
- Workers Compensation Insurance (if the business has employees)
- Umbrella Insurance
- Commercial Property Insurance
- Commercial Auto Insurance (if vehicles are used in the business)
In addition to these standard insurance coverages, key person insurance, business
interruption insurance, errors and omissions insurance, professional liability insurance,
employment practices liability insurance, fidelity bond insurance, and surety bond
insurance may also be recommended depending on your small business risks.
The small business insurance planning process is much too important to skip. Rather,
build a relationship with a BOLT small business owners liability insurance agent.
Your BOLT insurance agent will collaborate with you to identify your needs and unique
business risks to put together a coverage plan that is both appropriate and sufficient
for your business. Your agent will also review your policy periodically as your
business changes and grows to ensure your level of coverage remains appropriate.