Running your own business is a huge risk, but it’s important to understand how to limit your risks. One of the ways you can do this is by making sure you have Business Insurance. Michigan has laws on minimum coverages for business. However, 40% of small businesses don’t have insurance because there aren’t laws, rules or regulations that declare business owners make specific choices about protecting their investment.
So, why would a small business owner go without insurance? The main answer is cost. Usually, small businesses only see the cost of insurance and don’t think about what it could cost if they don’t have insurance. Business can face financially devastating risks if something happens and they don’t have the proper insurance protection in place.
While you can limit as many risks as possible, there are some that businesses aren’t immune to no matter how hard you try:
- Natural or manmade disasters (tornados, floods, fires)
- Theft by an employee
- Employee accidents
- Death of a business partner or key executive
- False advertising or copyright infringement
- Malpractice or negligence
- Product-related injuries or accidents
- A data breach, and much more
Looking for the right insurance coverage for your business can be daunting. There are some things you want to keep in mind as you prepare to talk to your Compass Insurance agent”
Call Your Trusted Advisors
You can’t do this on your own. Thankfully, when you become a client at Compass Insurance, we take the stress out of Insurance shopping. Compass works with over 17 different carriers. We shop you with each insurance provider and find you the best coverage at an affordable rate. Our agents can tell you which products you do or do need, identify potential risks, and make sure you’re covered in all the right areas.
Make A Business Plan
Have a solid business plan that details what your business will do and how it will do it. This helps secure insurance and funding as you start your new business. This plan demonstrates you’ve researched potential risks to your business and what you’re going to do to protect yourself from them.
What Are Your Risks?
Knowing your risks means you know what kind of coverage you’ll need. This helps narrow down the number of products available on the market you need to look at. If you’re opening a restaurant, you’ll want to look at the coverage that covers kitchen equipment and food product. If you’re a construction owner, you’ll want something that covers your large equipment and work vehicles.
Packages Are Good For Business
Your business may require you to have multiple types of coverage. This could be property coverage, vehicle coverage, and loss of equipment and liability coverage. In this case, your Compass Insurance agent would have you look at a Business Owner’s Policy (BOP). Having a BOP can help you save money because you’re covered in multiple areas without having to purchase multiple policies.
Personalize Your Business
You run your business differently than any other business owner. Your insurance coverage should also be personal. A BOP may make sense for you, but make sure you talk to your Compass Insurance agent about adding extra coverage to areas you need it most. Your agent can look at adding endorsements or other options specific to your business’ needs and risks. Working with multiple carriers allows us to look at all the different options available to you.
Make No Mistake About It
If you run your business out of your home, chances are you believe your homeowner’s insurance policy will cover you in the event something happens. In most cases, this isn’t true, and you need a separate commercial policy to protect your property and your business from liability. Secondly, having an incorporated or LLC doesn’t mean your business structure protects you either- it may cover personal assets but not your business losses.
Don’t Overdo it
While it’s important to make sure you protect yourself from as many risks as possible, you don’t want to over purchased policies. Your Compass agent will help make sure you’re only paying for what you absolutely need. If you have a question about a policy or endorsement, talk to them about it and they can explain why you do or don’t need that coverage. You also have the choice of selecting a higher deductible and following recommendations by your agent to keep money in your pocket.
Look Out For Your Business
The more your business continues to grow, so do your risks. Make sure you review your policy with your Compass Insurance agent twice a year. Review your risks, questions you have, or claims you’ve filed and how to prevent them again.
Compass Insurance Is Here For You
We point you in the right direction and take the stress out of insurance shopping. We believe in making sure our clients are protected and we love to help them save money at the same time. To see how we can protect you and your business from potential risks, call a local agent of ours today.