Insuring your business can be tricky. Here’s some ideas for you to consider
1. Insurance is purchased to protect you from losses that may be significant to your organization. But what is a significant loss to one organization may be a trivial loss to another. Therefore, overages, deductibles and policy limits must be chosen carefully.
2. Some of the various insurance policies available to organizations include: Loss of Business Income while your company is recovering from a claims, inability to collect on your accounts receivables due to inaccurate/incomplete records after a claim, Commercial general liability, Property, Theft of money & securities, Commercial vehicles, Profession malpractice/errors & Omissions, directors & officers
Every company is unique and needs it’s own coverage’s. Talk with your insurance broker or agent about this. The more we know about your business, the better we are able to advise you on your coverage’s at the best possible price.
Your business changes over time, and so will your insurance. Talk to us every couple of years to make sure your policy is protecting you properly. Alternatively, you could find yourself paying for coverage you don’t need.
3. Deductibles ensure that insurance is doing what it is intended to do pay for the substantial losses, not the minor ones. Deductibles help to keep premiums low. Essentially, the deductible is the amount for which you are self-insured. The higher the deductible, the lower the insurance premium.
Your Insurance should be about paying for losses and claims that your company can’t afford to pay for or recover from on your own.
4. You want to have adequate coverage without being over-insured and paying too much. To make an accurate calculation, work with your insurance broker and consider:
A. The value of your property: If you lost everything in a fire, what would be the cost of that loss?
B. Your potential liability exposure: Property is only one aspect of what insurance covers. Insurance also protects you if you get sued. It pays for legal costs and damages if you are found to be liable for a persons injuries or damage to their property. Some businesses are higher risk than others.