9 Tips to Maximize Your Commercial Insurance Coverage
If your doors are open for business, you need commercial insurance — whether it’s required for your industry or by law. It’s just good business to mitigate risks that could harm your company or even shut your doors.
From product liability lawsuits to vehicle accidents to cyber theft, threats to your business are all around you. But commercial insurance can safeguard your business to keep it operating, thriving, and providing for your employees’ families and your community.
Just like businesses, commercial insurance comes in all shapes and sizes, so it’s important to work with a commercial insurance agency to get the right coverage for your company. Consider these nine tips to know you’re getting the most out of your commercial insurance.
1. Understand Your Property’s Value
To know how much coverage you need and to maximize that coverage, you must know the value of what you have to protect. Assess your entire property, including the building, equipment, and inventory.
2. Buy the Right Coverage
Make sure you understand the risks of your industry, and purchase the right insurance to cover your risks and the assessed value of your property. Big problems could be down the road if your business is underinsured.
3. Read Your Policy Thoroughly
Before signing on the bottom line, read your policy thoroughly. You’ll want to review it with your commercial insurance agent to understand your coverages and policy limits, deductibles, and premiums.
4. Take Measures to Mitigate Risks
By increasing security measures, installing sprinkler systems, and improving and practicing safety protocols, you can reduce risks around your business. This can help you potentially receive discounts on your commercial insurance.
5. Maintain Good Records
Develop a solid recordkeeping system, and keep good records of company property, inside and outside your building. Use serial numbers, document purchases, and maintain invoices for equipment.
6. Expect Your Coverages to Change
Unless you don’t expect your business to grow, buy insurance that can grow and change with your company. Review and update your policy with your commercial insurance agency regularly.
7. Be Prepared for Natural Disasters
Determine whether your business may be prone to hurricanes, tornadoes, flooding, and other severe weather. If so, seek specialized coverage to mitigate those risks.
8. Secure Your Property
Many businesses suffer losses from theft and vandalism. Take measures to secure your property and reduce the risk of loss from theft or vandalism. Consider adding a crime policy to your commercial insurance.
9. Work With an Agent
Commercial insurance can get complex. Working with a commercial insurance agent who has the experience to see that you have identified your coverage areas and understand your policy is essential.
Get the Most Out of Your Coverage to Protect Your Business
Maximizing your commercial insurance coverage begins with properly assessing the value of your property and the risks your company faces. Taking steps like reviewing your policy regularly and securing your property can go a long way in helping you get the most out of your coverage — and keep your business thriving and growing.