Business Insurance: What Do You Want To Protect?

Posted on: 22 May 2017

Business insurance is vital to any small business that has something to protect. For example, if you are a limited liability company, you may have put your personal home up to secure a business loan. You could lose your home if your business is sued and you default on the business loans because of these hardships. That said, before you buy insurance, take stock of the following questions.

Are You Protecting Just the Business, or Something More?

Is your whole purpose for buying business insurance related solely to the business? If not, and you have other things tied up in your business, you may want to buy more insurance so that you can keep what matters. It is also a good idea to buy separate insurances so that your business and your personal insurance needs are protected separately.

Do You Need to Protect the Property and the Building?

Does your business have its own building and/or property (i.e. land)? These are things you definitely should protect, considering what it cost you to buy or lease the building and property. It is smart to buy a policy that covers the current value of the property and building, plus several thousands extra to cover any inflation that could occur after a time.

Do You Have Business Vehicles That Need Protection?

Fleet vehicles, delivery cars, etc., all need added protection because they are representing your company while in operation on the roads. For this, business insurance might cover certain expenses, but you will need to buy other policies to cover the vehicles. It helps to buy it all together from the same agent so that you do not have to repeat yourself to another representative about the fact that your vehicles are used for commercial purposes.

What about an Umbrella Policy?

An umbrella policy for business usually only works and/or applies when your business is operated out of your home. Then the umbrella policy covers your home and your business, regardless of what happens to each. You cannot get an umbrella policy if you are just seeking it for business purposes.

Do You Want Protection Against Lawsuits?

Finally, most business insurance protects the financial integrity of the company if and when you are sued. This is the primary and most important form of business insurance there is. If you expect that you will be sued for something, carry the maximum amount you can afford.

Talk with a company like Knepper Insurance Group for more information.

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Little-known Insurance Tips

While I have had auto insurance ever since I bought my first car at 16 years old and home insurance ever since I bought my first home several years ago, I have to admit that over the years I knew very little about insurance. I tended to just look at the price of the coverage and sign the paperwork without really looking into the pros and cons of each policy. After my friend was in a car accident recently (thankfully, she is okay!) and she said she had to pay for some of the damage to the other vehicle out-of-pocket even though she had a minimum state coverage auto insurance policy, I decided to put a lot of careful research into insurance policies and what they really offer. I want to help others by sharing the information I have learned on a blog. I hope I can help you!

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