As a business owner, you may ask “How Do I Know if I Have Proper Commercial Insurance?”. You know that having the right commercial insurance is essential to protect your business from financial losses. How do you know if you have the right coverage?
Here are a few things to consider when evaluating your commercial insurance:
- What are the risks that your business faces? This will vary depending on the type of business you own and the industry you operate in. For example, a restaurant will need different coverages than a construction company.
- What financial implications may I face? If your business closes due to a covered loss, how much income will you lose? How much will it cost to repair or replace your property?
- What are the limits of your current coverage? Make sure that your coverage limits are sufficient to protect your business from a major loss.
If you’re not sure if you have the right commercial insurance, it’s a good idea to talk to an insurance agent. We can help you assess your risks and recommend the coverages that are right for your business.
What coverages does my policy include?
The coverage included in your policy will depend on the type of commercial insurance you have. However, some common coverages include:
- Property insurance: This type of insurance covers damage to your business’s property, such as your building, inventory, and equipment.
- Business interruption insurance: This type of insurance covers the lost income and expenses that your business incurs if it’s forced to close due to a covered loss.
- Liability insurance: This type of insurance covers claims that are made against your business for bodily injury or property damage.
- Workers’ compensation insurance: This type of insurance covers medical expenses and lost wages for employees who are injured on the job.
- Errors and omissions insurance: This type of insurance covers claims that are made against your business for professional errors or omissions.
What are the limits of my coverage?
The limits of your coverage are the maximum amount that your insurance company will pay for a covered loss. It’s important to make sure that your coverage limits are sufficient to protect your business from a major loss.
What are the deductibles for my coverage?
The deductible is the amount of money that you have to pay out of pocket before your insurance company will pay for a covered loss. Deductibles can vary depending on the type of coverage and the insurance company.
What are the exclusions from my coverage?
The exclusions from your coverage equal the types of losses that do not receive coverage by your insurance policy. It’s important to understand the exclusions in your policy so that you know what you do and don’t have coverage for.
What are the claims procedures for my policy?
The claims procedures are the steps that you need to follow if you make a claim on your commercial insurance policy. It’s important to understand the claims procedures so that you can file a claim promptly and correctly.
By asking these questions, you can get a better understanding of your commercial insurance and make sure that you have the right coverage to protect your business.
Here are some additional tips for business owners who are looking for commercial insurance:
- Get quotes from multiple insurance companies (we help provide you with multiple policy options)
- Compare the coverages and deductibles offered by each company.
- Ask about discounts that may be available to you.
- Make sure you understand the terms of your policy before you sign it.
By following these tips, you can find the right commercial insurance for your business and protect your business from financial losses.
Here are some additional resources that you may find helpful:
- Texas Department of Insurance: https://www.tdi.texas.gov/
- National Association of Insurance Commissioners: https://www.naic.org/
- Insurance Information Institute: https://www.iii.org/
I hope this helps you understand how to know if you have proper commercial insurance.
If you have any further questions, please contact us here at Mike Lively Insurance Agency!
We have helped our businesses in Midland, Odessa, and throughout West Texas, for years and can help with your coverage needs.
