When it comes to business insurance, getting the right kind of business liability coverage is crucial. It’s your general liability insurance that pays for obligations incurred by your business when someone (other than owners and employees) is injured on-site.  Product liability on the other hand, protects you if a customer suffers injury as a result of using your product.  Additionally, business liability covers your legal defense costs if you ever find yourself the target of a lawsuit, and will cover any settlement or award if the suit against you is successful. For small business owners, getting the right amount of business liability insurance coverage can be tricky.

Start by Assessing Your Business Risks

If you want to buy business insurance that’s tailor-made for your situation, you need to make sure your insurance broker is apprised of your business risks. For example, if your business currently has no employees (other than yourself) and you don’t plan on doing any hiring for awhile, you likely won’t need to worry about paying for a coverage known as “Employee Dishonesty”. Additionally, if you’re running a home-based business, your homeowners insurance isn’t going to cover most things related to your business. For this, you’ll need a business insurance policy that fills in the gaps where your homeowners insurance falls short.  There are many types of coverage that can be bundled into a Business Owner’s Policy and selecting the appropriate coverage is crucial.

Consider a Business Owner’s Policy

Business insurance can be bought piecemeal, with separate policies that cover separate things, or you can buy a business owner’s policy that provides several types of protection in one single policy. Both have their merits, but it’s going to be the size and scope of your business that you’ll need to take into account when you decide which type of policy is best for you.

Review/Renew Your Policy Annually

As your business grows and changes, it can be very easy to find yourself under insured in the event that you have to file a claim. As your business grows, so too will the number and size of your obligations, and updating your insurance policy regularly will ensure you’re not left paying tremendous out-of-pocket expenses.

If you have additional questions regarding business insurance, call Carol at 661-803-3803 or stop by InsuranceSCV.com for a FREE quote!