Every business, from large to small, should be insured – even when you’re just starting out. It doesn’t matter if you’re running a small service-based business out of your home or if you’ve got a brick and mortar location. Unforeseen circumstances can occur to anyone at any time, and if you ever find yourself in one of those situations, you’ll be glad you had business insurance to protect you – even if you didn’t think you’d need it. For those who are new to business insurance, here are two tips to keep you ahead of the game in your first year.

Prepare for an Audit

The premium you pay on your business insurance coverage will be determined by several factors, not the least of which being your business’ annual gross sales. For those who are just starting out, your premium will be based on your estimated annual sale for the first year. Since the cost of the premium will be based on an estimation, your insurance company will want to verify the numbers and your premium will be adjusted. Don’t let the word “audit” scare you, insurance companies aren’t the IRS. They’ll just want to get a look at your books and see if the numbers are on par with what your estimation was. Depending on what they find, they may raise or lower your premium.

Be Prepared for the Unexpected

It sounds cliche, but it’s true. You have to consider the effects that accidents, illnesses and other potential risks could cause to your business in the future. For example, a service-based business run by the sole-proprietor would suffer greatly if the business owner wasn’t able to work for a few weeks. Thinking ahead and buying loss of income insurance could conceivably make up for the business owner’s inability to work.

For more information on business insurance, give Carol a call at 661-803-3803 or stop by InsuranceSCV.com for a FREE quote!