Risk management involves identifying and evaluating exposure to risks and taking steps to mitigate the effects of potential losses. While many different strategies play a part in managing risk, commercial business insurance is perhaps the most crucial element in a risk management plan. The following are some tips for business owners who want to make sure they have the right insurance to protect their business.
Get A Business Owner’s Policy
A business owner’s policy is a comprehensive plan that is designed to cover liability, employees’ liability, vehicles, and other property belonging to the business in a single package. Owners of any size business need to consider a policy; even a home business needs a separate policy from homeowner’s insurance, say the experts.
Re-Evaluate As The Business Grows
As a business grows, risks will change and insurance needs will change, so it’s important to re-assess regularly. Consider the volume of products sold, the number and value of business locations, the potential for product liability, and vulnerability to cyber attacks if much of the business is conducted online.
Cover All Employees
Make sure that the business owner’s policy covers all categories of workers that the business employs. This can include full-time, part-time, and free-lance employees, but it usually doesn’t include private contractors that the business pays to do a specific, one-time job. However, experts recommend getting liability coverage even for private contractors.
Consider Online Liability Coverage
Companies that conduct a lot of their business online need coverage to protect customers’ transactions. In addition, coverage can include cyber attacks that take the business offline for a period of time. The insurance is there in case clients are unable to access paid-for content on a website.
Get Liability Coverage For Products
Insuring products protects a business in case something goes wrong and a customer is injured or harmed in some way by a product. This might include food that has become contaminated or a safety feature on a product that malfunctions.
It’s important to be aware of any federal and state regulations that govern how a business needs to be insured. An agent can help a business owner make sure that the business is in full compliance with all governmental regulations. Learn more about commercial business insurance online here.