Insurance: Advice for New Businesses
Coupling the consideration of business insurance with the startup of your new business will be tough, but we make it easier and help make it more affordable to purchase insurance for that business. Follow these tips when considering coverage, and your job will be made significantly simpler.
Property Limits
Determine how much property you have, and if you are unsure, include it anyway. You can later talk to you insurance company or agent to figure out what exactly will be covered and what will not be. Your limits for property coverage have to be looked over regularly reviewed and updated as values may fluctuate. If you fail to do this, you may become unknowingly underinsured and have severe problems in the event of a claim.
Lost Income
Even if you are insured, after a claim your business may still go bankrupt because it loses income. Adding business income may be the difference in losing your business and having it go on without any hitches. This type of insurance will pay for loss of income for a certain period of time during your business’s recovery.
Liability Limits and Limitations
Typical liability coverage will pay for legal fees, injuries and damages for which your business is at fault for. Higher limits are better to have than lower ones, as you don’t always know how much costs could be incurred by injury or property damage.
Increasing your limits should not amount to as much as you might think. Even adding a few dollars to your premium payments could raise your limits by thousands. However, financial damage to a client caused by miscalculations will not be covered by your liability coverage, also known as a professional liability claim.
Consider a BOP
A typical business owner’s policy (BOP) covers several types of damages and incidents under one policy. It bundles policies that are normally purchased individually with higher-costing premiums, such as replacement costs, employee dishonesty and business income coverage. You can ca also choose higher limits for liability coverage.
