All businesses must account for significant risks and exposures that might threaten to incur extensive financial losses and far-reaching consequences. After all, even the most experienced employees and diligent organizations may not be able to fully suppress all incidents and perils, such as acts committed by other parties and natural disasters. With these things in mind, acquiring and maintaining appropriate business insurance should be a top priority.
Can I Customize My Business Insurance Coverage?
Business insurance does not typically refer to a single policy. Rather, your business insurance may be a portfolio composed of several types of coverage. When combined, these coverages can provide financial protection from many common risks and incidents that may affect your business. Although your company’s exact insurance needs may vary, many businesses may find it advantageous to retain the following:
- General liability insurance can help limit your out-of-pocket losses if you are at fault for an incident that affects a third party, such as bodily injuries, property damage and personal and advertising injuries (e.g., slander, libel, copyright infringement and false advertising).
- Commercial property insurance may provide financial protection for your business’s physical assets, including buildings, equipment, electronics, inventory and furniture.
- Business interruption insurance can compensate your organization for ongoing expenses and resulting losses following a disruption of normal operations, including rent, employee payroll, lost revenue and loan payments.
- Workers’ compensation insurance is typically required by law and may help employees who are injured or become ill on the job access essential medical care and recoup lost wages. It may also help pay for your legal costs if a lawsuit arises from an incident.
- Errors and omissions insurance, also known as professional liability insurance, may insulate you from financial consequences if another party accuses you of providing inadequate services, guidance or goods.
- Employment practices liability insurance may provide financial assistance if a current, prospective or former employee sues your business over improper workplace functions, such as discrimination, wrongful termination or harassment.
While the aforementioned types of coverages may be applicable to most commercial enterprises’ needs, you should also consider any additional needs. For example, if you use motor vehicles, commercial auto insurance is essential. Similarly, companies that handle sensitive data should retain cyber liability insurance.
What Factors Affect the Cost of Business Insurance?
Your business’s insurance costs may vary significantly depending on your unique circumstances. When assessing your risks and exposures and quoting you a rate for appropriate coverage, insurance companies may weigh the following factors:
- Number of employees
- Estimated annual revenue
- Business assets
- Prior claims history
- Portfolio details (e.g., coverages needed, deductibles and policy limits)
How Do I Get Business Insurance Quotes?
Getting quotes for appropriate business insurance can be a complicated process, so it’s important to work with a qualified professional, such as those at First Choice Insurance Solutions Inc. As an independent agency, our dedicated staff has access to many coverage options and will work with you to ensure that you receive optimal policies and ideal rates. Contact us today to get started.