What to Know About Commercial Insurance for New Business Owners

Nov 09, 2022

Business Insurance

What to Know About Commercial Insurance for New Business Owners

Commercial insurance for new business acts as a financial safety net in the event of misfortunes. It's almost not worth going into business if you don't protect your assets with insurance. Here's what you should know about commercial insurance before you launch a startup.

Know your commercial insurance obligations

Many entrepreneurs are not required to carry commercial insurance for new business ventures, but it's a good idea to be aware of what your state requires. Certain industries that deal with public risks are required by law to carry general liability coverage.

All businesses that hire employees must carry workers compensation insurance to pay workers who are injured on the job. You must have commercial auto insurance coverage if your business owns a vehicle. In all other instances, commercial insurance is optional for most small businesses. Nonetheless, it's still wise to invest in coverage that covers your business against disasters that can potentially shut it down.

Financial institutions require general liability coverage if you finance a commercial property with a loan. Many commercial landlords now require business tenants to carry general liability insurance.

Be aware of risks that call for protection

Every business has a set of risks to worry about, such as natural disasters, theft, and vandalism. Businesses that plan for success set up financial protection against such catastrophes via insurance. With a customized policy, your insurance provider will pay for certain damages that disrupt your operation.

Select an agent familiar with your industry

You'll get the best service for your insurance costs if you choose a provider with a successful track record serving your industry. Many things can go wrong in any industry, so it helps to work with an insurance team that understands your challenges.

It's better to be over-insured than under-insured

The only thing worse than being over-insured is being under-insured. Either way, you should be on top of establishing the right amount of coverage for your business needs. Being over-insured cuts into profits, but at least it provides a degree of financial safety.

Bundling coverage with BOP

Many small companies choose a Business Owners Policy (BOP) for their insurance coverage. The beauty of BOP is that it combines several forms of business insurance together so that you don't have to spend much time assembling the most basic insurance elements. This type of plan is usually cheaper than a standard business insurance policy.

Pay attention to policy details

Every commercial insurance policy is written for a specific enterprise based on multiple factors. Be sure to read your policy thoroughly, then talk with your insurance agent if you have any questions about it.

Seek coverage needed for business growth

As your business grows (either by hiring more employees or expanding operations to a new location), it's important to revisit your insurance policy. Make your necessary policy adjustments over time to account for changes to the business.

Get started with your tailored commercial insurance policy!

At Corbett & Assoc Insurance Agency, your commercial success is our priority. We go the extra mile to ensure all-round protection of your business and its valuable assets at reasonable rates. Talk to our expert insurance professionals to learn what we can do for you. Call our office today at (805) 496-1424, or get your free quote now!

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