Starting a business comes with a lot of responsibilities, and getting the right insurance is one of them. It’s not just another item on your to-do list; it’s a crucial step that can protect your business from being wiped out by a lawsuit. If you think your current coverage might be lacking, the following information will help you understand why you might need more insurance.
**Signs You Might Need More Insurance**
Typically, businesses choose from four main types of insurance: property, liability, auto, and workers’ compensation. If your business doesn’t have employees or company vehicles, you might not need the last two. But these are just the basics. For example, if you’re worried a major lawsuit could threaten your business, an umbrella policy offers extra protection. Also, if your business gives advice or is prone to data breaches, specialized liability policies can be a big help.
If you’re feeling uneasy about your current policies, that’s a strong sign you might need more coverage. It’s natural to want to save money, but a tight budget can also signal insufficient insurance. There are affordable, comprehensive policies out there. If you chose a policy mainly for its low cost, you might not have enough coverage.
**When to Reconsider Your Insurance**
Many business owners only realize they need more insurance after making a claim, which can reveal gaps in their coverage. If this hasn’t happened to you yet, it’s a good idea to explore your options, perhaps with a provider like Next Insurance. There are also specific times when you should review your insurance.
For instance, if you move or upgrade your premises, your insurance should reflect the current value of your property, not the old one. The same goes if you buy new equipment—make sure it’s adequately covered. Also, when you sign a business contract, check the terms carefully as some might require additional insurance, which can be easy to overlook.
Beyond workers’ compensation, there are other types of insurance you might need for your employees. If you have a high turnover rate, face challenges with thorough background checks, or manage a large team, you should consider additional coverage. For example, fidelity bonds protect against losses from employee theft or data breaches.
Planning for your business’s future might not seem like the time to think about insurance, but it’s vital. In tough times, insurance can keep your business afloat. So, as you plan for growth, make sure you include comprehensive coverage to tackle any unexpected challenges.