Responsible business owners know that the right policy, like the one you can find at Next Insurance, is the best way to protect all the things you’ve worked so hard to build. Comprehensive business insurance usually includes things like a General Liability policy, Errors & Omissions insurance, and cyber liability insurance.
However, before reaching out to a company, it’s important to do a little self-reflection. The smartest consumers have a general idea of what they need, and what they can afford, before they talk to a salesperson. This exercise is particularly important when it comes to insurance. Otherwise, owners may end up buying too much or too little coverage. Either outcome could be disastrous.
Do You Have Employees?
If so, your business might need workers’ compensation insurance. Different states have different requirements. But in many jurisdictions, if you have more than fifty employees, you must carry workers’ compensation insurance. This policy protects you against personal injury and other claims from your workers.
Workers’ compensation covers physical injuries, like falls and other such incidents. This policy does not protect owners against employment discrimination or other similar claims. Employment Practices Liability Insurance does provide such protection. So, many owners have EPLI insurance in addition to workers’ compensation.
What Type of Space Do You Rent or Own?
Retail and other high or medium-traffic spaces usually mean an increased risk of bodily injury claims. So, these owners should probably expect to buy more GL insurance and also pay somewhat higher premiums.
Office-only spaces need insurance too, even if there are only one or two workers. Bodily injury claims are rare in these environments, but they do happen. Given the staggering cost of medical bills and legal expenses, you simply must have some financial protection.
Freelancers, contractors, and other business owners without offices or employees need insurance as well. GL policies usually cover losses related to defamation claims. These issues are common in the internet and social media age. Many business insurance policies also cover the tools of the trade, like computers. Building contractors, massage therapists, private tutors, and other people who visit customers’ homes need the property damage coverage that GL policies usually include. Customers are much more willing to let you into their homes if they know you are financially responsible.
Do You Sell Alcohol?
Most states require liquor liability insurance. These policies cover things like property damage and barroom fights. Most states have dram shop laws as well. These laws hold some commercial alcohol providers responsible for damages if their patrons cause car crashes or are otherwise negligent.
For some businesses, such as convenience stores, selling alcohol is not really optional. But what if you operate a coffee shop that also sells a little beer and wine? If your revenue from alcohol is negligible, you may consider terminating such sales to avoid paying insurance premiums.
Do You Accept Credit Cards?
Nearly everyone does. The risk of a cyber breach is incredibly high, because these criminals are incredibly sophisticated. Two-thirds of small businesses would cease operations after just one cyber breach, so the stakes are incredibly high as well. Stopping alcohol sales may be an option for some, but taking credit cards is mandatory for almost everyone.
Take a few moments for reflection to make sure you get the right kind of business insurance.