When it comes to insuring your business remember the story of Goldilocks and the Three Bears, there is — Too Much Insurance, Not Enough Insurance, and Just Right.
Is too much insurance a risk?
Yes. It doesn’t make financial sense to be over-insured. Why pay higher premiums just to exceed coverage?
What about not enough insurance?
Budgets are a big concern for businesses and insurance may sometimes be an item that we have a tendency to cut back on, but being underinsured when a catastrophic event happens can destroy a business.
Is there a Right Amount of Insurance?
Insurance is not an exact science. When it comes to insurance there are many factors to consider when trying to determine the right amount of insurance. Businesses are not alike and each business have different needs. Working closely with an Independent Agent will give you access to insurance companies that may fit your need better. They can help determine what is approximately the right amount of insurance for your business.
You don’t buy Insurance just one time, you need to stay current and update yearly.
It is good business practice to analyze and review you insurance needs at least once a year. Over time a business changes and so does insurance requirements. What might have been good enough for last year may be inadequate for the next.
There is more to your business than the obvious, so don’t forget intangible risks.
When it comes to insurance, we tend to focus on what we can physically see – property, inventory, vehicles, equipment. But there is more to a business than the physical, remember it is what we don’t see which also needs coverage. All businesses need some sort of liability insurance and this is where a good agent can help.
Insurance is a necessary part of doing business, make sure you have the right coverage for your business needs.
Protecting your business from risk is a significant priority for any business, large or small. But determining exactly how much insurance is right for your business’ specific needs and exposures is another matter. Being over-insured or under-insured is one of the most prevalent problems in business insurance today, making right-sizing coverage vital.
By Lovitt & Touché
Feb 22, 2019
The market for commercial property insurance continues to be challenging. Here are several factors contributing to premium increases for commercial property coverage.