- What does my policy cover?
Questioning about the insurance policy coverage is the most important. One insurance policy can cover different risks. The insurance policy that covers most of the risks can be the best fit for your small business. It is not necessary that one policy adequately keep your business safe. More than one policy can effectively cover the needs of your business. If you are clear about what is covered, do not ignore what is not covered or what are the gaps in the insurance coverage. This will help you to understand how these gaps can impact your business. For example, flooding is not included in other types of insurance. Damage due to flood may cause a large financial burden on you. Business property coverage depends upon the deductibles, aggregate, and per-occurrence limit. You can estimate financial damage and choose your property insurance coverage limit according to the estimated cost. If the estimated cost is less than the damage that occurred, you have to pay the cost out of your pocket. The insurance agent will help you to provide the policy that can cover the potential damage. An inadequate insurance policy limit may result in a penalty so, you have to purchase an effective insurance policy.
General liability coverage is most often included in the insurance policy of small business owners that covers the medical expenses of the customer injured at your business. This will also pay the legal cost if you are held liable due to the accident at your workplace. A coverage limit is applied to this insurance policy. Business income coverage pays for lost income due to the snow, fire, or wind. For example, if a fire damages your business, this will pay for the costs of your temporary office while renovations at a damaged place are made. This insurance policy will subject to the coverage limit and time limit. This means that coverage will last in six months. You can ask an insurance agent about limits to be sure.
The property coverage will replace the loss to the business’s property including building and equipment against covered perils like fire, snow, and wind. Error and omissions coverage helps you to replace loss due to the unintentional mistakes made by you or your staff. Data breach coverage helps you to pay for certain expenses due to the data breach like legal costs, credit monitoring services, and informational material for customers. Commercial auto coverage helps protect the vehicles used in the business. This ensures you get back on the roads after a loss due to accidents. Employment practices liability insurance covers the legal cost of a lawsuit against you or your employee. This type of coverage is provided against the issues like discrimination, sexual harassment, wrongful termination, violation of family and medical leave act, and deprivation of career opportunities.
- What affects my insurance cost?
You should ask insurance agents about the factors that can affect the cost of your insurance policy. Commercial insurance can vary from business to business. The cost of the insurance mainly depends upon the risks in a business. Following are the factors that can affect insurance cost but you can talk to insurance agents to lower the cost.