Commercial insurance coverage is critical for all business owners, even if you have a small business. Operating your business introduces certain liabilities, and you must ensure these liabilities are covered adequately to protect your business. As you approach an insurance agent, there are specifics you should evaluate to optimize coverage and avoid unexpected circumstances. No matter the size of your business or the industry you operate in, read on to learn what three factors you should double-check when buying commercial insurance.
1. Coverage for Natural Disasters
Commercial property insurance policies cover certain perils. The standard coverage levels typically apply to fires and flooding. However, some locations may increase risks for specific natural disasters. The most common are hurricanes, tornadoes, or earthquakes. These increased risks aren’t covered fully through a standard policy due to the greater frequency of these natural disasters.
Some commercial properties are in designated flood zones because of close proximity to lakes, rivers, or the ocean. Similarly, the geographical area could also place your property in an earthquake zone. Double-check your standard commercial policy for adequate coverage for these natural disasters. In designated zones, additional coverage is necessary to protect your property adequately.
2. Coverage Level for On-Site Assets
Property insurance coverage offers a certain coverage level for on-site assets like equipment, your inventory, and other items inside the building. Always double-check the predetermined value applied to these items through your commercial policy. If this value won’t replace vital items quickly, additional strategies are needed to protect your on-site assets. Sometimes, it’s necessary to purchase additional riders to cover high-valued items more fully.
For riders, it’s important to consider getting an appraisal for these high-valued items. Documentation can prove the item’s true value and improve the coverage amount. These assessments could help you replace these items if they are stolen or damaged during covered events. An insurance agent can calculate the total cost for coverage plus these add-ons or recommend umbrella policies to control costs.
3. Deductibles for Your Policies
Policyholders may choose a higher deductible to save on their monthly premiums. However, as a business owner, you’ll need fast coverage when the unexpected happens. In business, there isn’t a guarantee that your company will remain successful. So, you should plan ahead by evaluating the benefits of paying lower premiums versus accepting a higher deductible.
Double-check the deductibles for each policy you have for your business. Consider the risks and how likely it is that you’ll need to file a claim. You can adjust deductibles to avoid financial hardships that prevent immediate access to coverage. Paying a little more each month could help decrease deductibles and protect your company more proactively. Creating an emergency savings account to cover these deductibles could prove wise later.
Liabilities and unforeseen circumstances could destroy your company. If you don’t know the fine details about your commercial coverage, you cannot mitigate risks to your business or ensure stable business operations. Evaluating these details with an insurance agent helps you avoid mistakes that prove costly later. Schedule an appointment with an agent to evaluate your policy today.
