Call Your Business’s Insurance Agent When…

Countless American businesses have gotten their start in the spare room, garage, or basement of some dreamer’s home. If those dreamers are lucky, and work hard enough, the business they’ve started may eventually outgrow the confines of their home. If the business has grown to the point where there’s not enough room for the inventory, equipment, or new employees, you’ll soon be looking for your first office space. Once your business has reached this milestone, and each of the events below, it may be time to call your insurance agent to ensure your business is properly covered in case the unexpected happens.

Your Business’s First “Real” Office

Up until now, the business (at least the equipment and inventory) may have been covered under your Homeowners Insurance. Once you’re in your new space/office outside of your home, the homeowners policy can’t protect you any longer, so you’ll need commercial property insurance to cover the potential loss of your equipment, inventory, and the building itself in case of a catastrophe, like a fire or flood. Additionally, you should discuss your need for general liability insurance to cover you when customers come to visit your new office.

Adding New Employees

Once your business grows to the point where you can’t handle all the work on your own, you’ll need to onboard some help and that will require Workers’ Compensation Insurance, which can provide financial support to your employees who find themselves unable to work due to an injury sustained on the job. Additionally, you’ll want to offer a competitive benefits package, especially in a tight labor market like we are experiencing now in the United States. A call to your insurance agent will help determine the right health insurance and prescription coverage to meet the needs of—and attract—your future employees.

Added Income/Equipment/Inventory

As your business grows, you may find it necessary to store more inventory to fulfill all the new orders your business is receiving. Or perhaps you’ve upgraded the equipment or machinery in your shop or new computers for the staff. It’s a good idea to check on your commercial property insurance periodically to make sure you’re appropriately covered. Plus, as your revenue increases, you might want to consider business income insurance to help pay your bills and provide income in the case of a devastating property loss or other covered peril.

If it seems like the list of needed coverages is getting a little long already, don’t fret. Business Income/Interruption, Property, and Liability insurance coverages are usually bundled into Business Owners Policies. You can learn more about Business Owners Policies here.

Hitting the Road

You and your employees may need to drive to pick up supplies, to visit clients or to make deliveries. You and your employees may be using a company car or your personal vehicles for these business needs. It’s not enough that you or your employees have your own automobile insurance. Because your business could be liable for property damage or injuries to your employees or other drivers, you’ll need Commercial Auto Insurance to protect your business from potential lawsuits.

Specific Coverage for Your Industry

There is a specific type of insurance coverage available for just about every kind of business you may operate. There are coverages tailored, for example, to retail, restaurant/food service, landscaping, and real estate businesses. Your business insurance can be customized for the specific risks faced by your business, so you’ll want to consider the following factors when choosing coverages: What kind of work you do, your physical space, your property and equipment, your intellectual property, and your employees and customers. Be ready to discuss these factors when you call your insurance agent.

While almost every state requires certain types of insurance for your employees, including Workers’ Compensation, unemployment, and sometimes disability insurance, most other business insurance policies are optional. However, if you choose not to purchase a business insurance policy, remember that the costs of rebounding from a catastrophe may come out of your pocket, as the business owner. Or worse yet, your business may not recover at all.

Many business advisors tell new business owners that business insurance is not an area where you should reduce coverage to save money. Being a business owner is often stressful enough. A business insurance policy is there to give you peace of mind about the things you can’t control so that you can focus on the things you can.

To start a discussion with a Glenn Insurance Commercial Insurance specialist, call 1-888-OK-GLENN or 609-641-3000.