All business owners know the importance of having quality commercial insurance benefits in place. Still, some struggle to know where to start building a quality policy. Some are tempted to dive in and figure it out as they go. Still, it’s never a good idea to buy commercial insurance blindly.
Your business insurance must meet the needs of your business, not least because it must address the specific liabilities present in your precise industry. With the help of your agent, you will be able to build a commercial insurance portfolio that is tailored uniquely to your operation. Here are just a few reasons why it’s imperative to make sure your coverage is always tailored to your industry first, and your specific operation, next.
Reason #1: Recognize Your Legal Obligations
Different forms of business insurance are required by law in numerous industries, and you must maintain your coverage in order to maintain your operating privileges. Most professional services—contractors, doctors, lawyers, etc.—must carry very specific coverage.
However, even the average small business is often required to purchase coverage like workers’ compensation or commercial auto insurance. Still, regardless of your particular insurance requirements, it always helps to invest in coverage as wisely and expansively as possible. With the help of your agent, you will be able to make the best decisions about your coverage.
Reason #2: Understand That Different Industries Have Different Risks
Every business is different, and as a result their insurance needs will vary significantly from operation to operation. After all, a general contractor faces significant liabilities that are different from those of a restaurant, media outlet or web design firm. Your coverage, therefore, must relate to the amount of risk that you face in your operation. Your agent can make sure your policies are tailored to your exact niche.
Reason #3: Remember That You Must Have Specific Liability Insurance
There are numerous types of liability insurance available for businesses, which is why you must key into precisely which benefits you need. When it comes to liability claims, the type of coverage you have will be a big influence on how much assistance you might receive.
At minimum, you must have general liability insurance, which will help you compensate affected third parties if you negligently (if unintentionally) cause them property damage, bodily injuries or similar harm. Still, some policies go even further, and offer more specific coverage.
Some liability plans are tailored to businesses that offer products (restaurants, retailers, manufacturers), and will address the fact that you might, at times, cause someone harm when they use those products. Other policies, known as professional liability policies, will help businesses that give professional advice (lawyers, CPAs, physicians, etc.) in case their mistakes cause someone else harm.
You need business insurance coverage, but blindly purchasing a policy that might not meet the needs of your company puts you in a risky position. Instead, consider coverage specifically tailored to your exact industry.