Matching Business Size with the Right Business Insurance
Business insurance grows with you, or at least it should. This type of insurance coverage is like any other. You select a policy that seems to fit the level of risk your business faces. The policy kicks in and provides financial support to you when you need it up to the limit that is listed on the policy. But your business is growing and changing. Have you thought about updating the amount and type of coverage you need to match that unique need?
From the first time you select a business insurance policy until each time you work to upgrade the one you have, it is essential to match your business size with the right coverage. The problem is there isn’t a one-size-fits-all solution. Your business may need a higher amount of liability insurance than another. That company may need more inventory protection. The key to knowing how much coverage you need is simply to take into consideration your risks, determine what your assets are and estimate concerns related to liability.
How can you do this? Work closely with your business insurance agent to consider your current financial needs. Here are some things to keep in mind.
- If your business is growing in terms of revenue, it likely means more risk. You have more customers and more inventory. This requires a higher value of liability insurance as well as more property protection.
- Are you expanding to a secondary location? You need to insure that building as well.
- Have you had recent claims against your liability protection? This may indicate a need for a higher value of liability insurance.
- Have you added more services that require more workers? Do you have a worker’s compensation plan that covers those risks?
- Do you have more assets, vehicles or inventory? This, too, adds a higher level of risk to your policy.
At the same time, you may also want to consider policies that can reduce your overall costs. Your business insurance provider can help you to locate policies to not only cover your new needs as your business grows but also to keep your costs affordable.
Do you have the right coverage? Call Pan American Insurance at (888) 726-3380 for more information on El Paso business insurance.