One of the most rewarding aspects of owning a small business is seeing that it is loved by your customers and partners. Nothing compares to the liberating feeling of bringing your ideas to life and watching your hard work pay off. However, no matter how much you love what you do, little hiccups are bound to happen. A customer might trip and fall in your store, or a client could show up and claim that your advice caused them a financial loss.
How do you prepare for these unexpected challenges?
One important step is ensuring you have the right insurance policies as mandated by state and local laws. Your agent will need to prepare a certificate of insurance when securing contracts with third parties.
Let’s explore the ins and outs of liability insurance and walk through some helpful steps to keep your business secure and successful.
It’s essential to consider the services or products you offer and the roles of your employees to find the right insurance for your business. Your business faces unique challenges and has its strengths, so your insurance needs are going to be different from others.
If you run a retail store, you might worry about customers getting injured. If you have a consulting firm, you'd probably be more concerned about mistakes or omissions. High-risk activities, like using heavy machinery or handling hazardous materials, naturally increase your liability exposure.
As you hire more employees, you also increase the chances of workplace injuries or mistakes, which can affect your coverage needs.
Where your business is located also makes a big difference in your risk profile. If you're in a high-crime area, you'll face different risks than if you're in a safer neighborhood.
The condition and safety of your premises also matter. If your business involves lots of customer interactions, like in retail stores or restaurants, it’s important to consider potential customer injuries and property damage. Some industries also have specific regulatory insurance requirements.
It's always good to review your past incidents or claims to identify potential future risks and determine the right coverage levels for your business.
Choosing the right liability insurance might seem overwhelming, but you can simplify the process by understanding and comparing policies. Begin by researching different options from various providers. Look closely at the coverage options, exclusions, limits, and premiums. Taking the time to do this can help you find the best fit for your needs.
This is also helpful to generate any specific questions you want to bring to your advisor.
Tip: Use online insurance tools and resources to make informed comparisons! These free tools can help you quickly evaluate different options and find the best coverage for your business.
To help you get started, here are some types of insurance coverage to consider for your business:
Don’t hesitate to reach out to a licensed insurance advisor to help you understand and secure your industry’s insurance requirements.
If you have any questions about what coverage does and why you need such coverage, licensed insurance advisors can help! They can provide expert advice, answer your questions, and help you understand the insurance options available. Insurance advisors can also assist in tailoring a policy to fit your specific needs and budget to make sure that your business gets the best coverage possible.
Advisors can also help you simplify your contract requirements. They can explain specific insurance clauses you need to meet, such as workers' compensation insurance and minimum liability coverage. They’ll guide you on getting additional insurance to make sure that you stay compliant with your clients' contracts. They can also assist in future-proofing your business by helping you plan and adjust your coverage as your business grows.
Just as you can't control the weather, you can't predict every potential risk to your business.
Taking the right steps to assess your business risks and understand the various types of insurance coverage can make a big difference in protecting what you work hard for.
You don't have to handle insurance decisions on your own! Don't hesitate to reach out to a licensed insurance advisor to get expert advice and help you make informed insurance decisions to protect and future-proof your business.
If you’re ready to make a big step, simplify your insurance search with the help of CoverHound! Secure the appropriate liability insurance for your business from insurance providers across the country with our all-in-one online platform.
Insurance shopping simplified
Insurance shopping simplified
