Starting a business involves a lot of steps, including getting the right insurance. While everyone knows having insurance is important, it’s more than just checking a box. A single lawsuit can wipe out a business that isn’t insured. If you think your coverage might be lacking, the information below is essential.
Signs You’re Underinsured
Most businesses take out one or more of these four types of insurance: property, liability, auto, and workers’ compensation. If you don’t have employees or company vehicles, the last two might not apply to you.
But these are just the basics. To protect your business from big lawsuits, consider umbrella policies. Businesses that give advice or are vulnerable to data breaches should look into specialized liability policies.
Worried about your current coverage? That’s a sign you might need more insurance. Everyone wants to save money, but if you picked your insurance because it was the cheapest, you might not have enough coverage.
When to Update Your Insurance
A lot of people realize they need more coverage after they file an insurance claim and find out about gaps in their policy. You don’t have to wait for that. Explore options with providers like Next Insurance anytime, especially during major changes.
Moving to a new location or renovating means you might need different insurance. If something happens, your insurance should cover the new setup, not the old one. The same goes if you’ve bought new equipment.
Always check with an insurance agent when you’re signing a business contract. Contracts often have clauses that require specific insurance, and it’s easy to miss these details. Client or vendor contracts might need extra coverage too.
Insuring your staff goes beyond just workers’ compensation. If you have high employee turnover, struggle with thorough vetting, or manage a large team, you might need additional coverage. Fidelity bonds protect your business from damages caused by an employee, like theft or data breaches.
Planning for the future of your business might not be the most exciting task, but having the right insurance can be a lifesaver in tough times. Make sure you include solid insurance coverage in your growth plans to handle any surprises.