From general liability insurance to commercial auto insurance, there are many options available for business owners to protect their business. All are great additions to your business, but knowing which coverage options to purchase and how much you should be spending is challenging if you are not familiar with insurance. The following are three tips to help you determine how much you should spend on business insurance.
Speak with a Lawyer about Trends in Litigation 
Your business lawyer is your partner when it comes to remaining prepared for legal issues concerning your business. Their knowledge and experience can help you avoid legal complications, if it’s utilized properly. The same theory holds true about their advice with business insurance. They are familiar with court cases and settlements, so they can provide you with advice about what amount and type of coverage will be appropriate for your business.
Research Replacement Costs
From your commercial vehicle to your physical building, replacement costs are a significant factor many insurance companies consider when they are handling claims. To increase the chances of you getting the amount you need to make your business whole after a loss, you need to consider the replacement costs of your assets. You will need to make a formal assessment on a regular basis to ensure that you have enough coverage for your plant and warehouses each year; otherwise, your business may have to pay the difference.
Maximize the Must-Have Business Insurance Coverage Options
There are a few insurance policies certain businesses must have in order to remain legally compliant, such as workers compensation insurance and commercial auto insurance. Along with those required policies, it’s also smart to get coverages that make good business sense, such as commercial property insurance and general liability insurance. It is important for you to purchase as much as you can afford with these types of insurance to ensure that your business gets full protection when facing a lawsuit. To protect your business further, you can choose to purchase the following types of insurance:
- Directors and Officers insurance
- Business interruption insurance
- Professional liability insurance
- Umbrella insurance
- Data breach insurance
Each one of these policies enhances your protection and helps your business remain financially solvent.
You’ve invested a lot in your business; therefore, it makes sense to purchase enough insurance so that your business isn’t threatened by natural disasters, fire and lawsuits. By strategically purchasing the amount of insurance that comes close to making your business whole after a loss, you limit your financial exposure.
Our agents help personally assess your needs. Call Keats Insurance Agencies for more information on business insurance.