When establishing a small business, you will need to protect your company and employees through an ample commercial insurance policy. However, there are some mistakes that are often made along the way when investing in coverage.
The biggest, and most costly mistake a business owner can make is not recognizing the need for a small business insurance policy at all. While it is true that some homeowners insurance plans may extend coverage, it is often minimal and can leave business owners financially responsible for additional damage or loss. Depending on the situation, your individual insurance policy may not provide coverage or protection, such as if you are sued. Rather than increasing limits on original policies, business owners are urged to invest in some form of commercial insurance to ensure they can keep their business running even after an accident or other incident occurs.
Depending on the your industry, your small business may enlist the services of a third party, such as a contracted worker. This can affect the amount of workers’ compensation insurance you purchase, but this can vary from state-to-state. One way to avoid having to increase the amount of coverage you have, is to hire on others that can provide proof of coverage and workers’ compensation. This can be more important for business owners who are on a strict budget and are financially unable to increase their original workers’ compensation policy.
Finding the right insurance provider is also essential. Rather than spending time to compare individual companies, business owners can use BOLT to search and compare their options. Comparing multiple dynamics, including terms and conditions in addition to premiums is crucial, as even the best priced policy can fall short in other areas. Small business owners may be best off going with a basic package, though investing in add-on policy options for optimal coverage may be necessary. Whether you decide to go with a local insurance provider or a nationally recognized one will depend on your future plans for growth and extension of services. Agents will be able to better customize coverage, but services provided by BOLT can make it easier to narrow down options.
Though seeking out commercial insurance may seem similar to finding the right auto or home insurance policy, but it may be more important to focus on limits that may be set regarding business liability insurance. For an additional cost, business owners can amplify their commercial insurance and protect their company on a much larger scale without blowing their budget.