As any entrepreneur knows, risk is an inherent part of business ownership. When you’re starting a new business, it’s important to consider the liabilities your company is exposed to, and take measures to prepare for what could go wrong. Purchasing small business insurance is the best way for a new entrepreneur to mitigate and manage some of the risks their companies face. Here are a few tips to help you choose the policies right for your business.
1.) Know What You Need
Every business operates differently and will have specific insurance needs. Which small business insurance policies should you consider? At the bare minimum, companies with employees are legally required to have workers’ compensation. General liability insurance is a foundational policy that covers your business for any third-party damages you may incur (property damage, injuries or incidents that occur on your premises); legal defense costs if your company is sued; and reputational damage due to libel, slander or copyright infringement.
2.) Understand Your Industry’s Risks
Evaluating the risks you’re likely to face in your industry will help determine the right insurance policies for you. For example, a tech company who does business online or handles sensitive customer data should invest in security with cyber liability insurance. A company that sells power tools should purchase product liability insurance to cover legal fees and medical bills in the event that a customer is injured.
3.) Prioritize Quality Coverage
We know that when you’re running a business, your budget may be tight in the beginning. However, it’s important to realize that small business insurance plays a crucial role in protecting your business from serious financial damage. While it may be tempting to choose the cheapest policies, they offer limited coverage that leaves your business vulnerable. It’s better to cover all your bases to save yourself from greater losses in the future.
4.) Understand What Affects Your Insurance Rates
It’s important to understand what can affect your small business insurance quote. Factors that may impact the cost of your insurance include: the size of your company, your location, property value, assets, claims history, industry risks, and years of experience, among others.
5.) Get Help From An Agent
While it’s good to do your due diligence in researching insurance coverage, you should still seek professional assistance to help you compare rates and coverage. There are many hidden risks associated with running a business that you may not even realize. Getting advice from an agent will give you peace of mind in knowing that you’re covered, and they’ll help you figure out exactly which policies are right for you.
CTG Insurance: Personalized Business Insurance Coverage
At CTG Insurance, we know that a one-size-fits-all policy doesn’t work. That’s why we offer personalized insurance solutions that consider your unique situation and set of risks. While you’re working to grow your business and serve your customers, we’re protecting you from liabilities. Start a quote and get the best protection possible.