Business Insurance Basics

Business Insurance: every company needs it. Even if you think you have the safest company in the world, don’t risk it. Sometimes it just takes a lawsuit from an unbalanced employee to wipe out a whole business that’s just gotten on its feet. Even if you run a business by yourself somehow, you could get hurt or sick for a month – what then? Who’s bringing in the money?

No one is exempt from unfortunate situations in the workplace. Business insurance is a must. Here are a few tips on how to be smart when buying it.

Know & Assess Your Risks. When you buy business insurance, your insurance agent determines the level of risk they will accept when issuing policies. Your premium (the amount you pay for the coverage) will depend on a few things – where your business is located, what sort of building it’s in, what type of work it is, how many employees you’ll have, etc. Knowing right off hand these facts will help your insurance agent find the right policy for you.

Consider a Business Owners Policy. You can get business insurance separately or in a package called a business owners policy (BOP). Sometimes if you purchase separate policies from different insurers, it results in higher total premiums. A BOP combines all the normal coverages (cover property, general liability, work vehicles, business interruption) into a standard package at a lower cost. BOPs simplify the insurance buying process, and can save you money.

Shop Around. The extent and costs of coverage vary from company to company. Some brokers specialize in insuring specific types of business, while others can connect you with policies specific to your business activities. For example, if you operate a tow truck service, you'll want to find an agent that can help find policies that specifically cover automotive service businesses. Often specialist brokers can get you the best coverage and best rates.

Assess Your Insurance Coverage on an Annual Basis. As your business grows, so do your liabilities. You sometimes gain more employees, more equipment, more property, etc. If you’ve purchased or replaced equipment or expanded operations, you should contact your insurance agency to discuss how these changes could affect your business insurance policy.

Altman Insurance is an independent insurance agency in the Olympia, Washington area. To learn more about Olympia, Tacoma, Lacey, and Seattle business insurance, contact them today.