Business Insurance Planning

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.