How to Increase Business Insurance Coverage

How to Increase Business Insurance Coverage

Many business owners make the assumption that once they have a business insurance policy in place, that's it. The reality is that you need to do everything you can in order to protect your business. Increasing your business insurance coverage in certain areas may be a necessity. It ensures that if you do have to file a claim, everything will be taken care of as opposed to you paying out-of-pocket for the remainder.

Calculate Your Risk

One of the first things you want to do when looking at increasing business insurance coverage is to calculate risk. This is something that needs to be done from time to time because your business evolves. You may be engaging in more activities than you were a year ago. This means that you may assume more risk as a business, whether it be against inventory loss, lawsuits, or anything else.

For example, if you have suddenly added a fleet of vehicles to your business, there's more risk because employees could potentially get into an accident on the road. This means that you risk your employees getting hurt and damage in company vehicles. As such, you want your business insurance to reflect these risks so that you have protection.

Identify Your Income and Inventory

Your business insurance policies are based upon income and inventory. This will allow you to have the necessary protection in place. You are going to require a different policy if you are making $100,000 worth of income versus a business that brings in $1 million worth of income. Your sales figures factor in, and therefore it's necessary to have this information in front of you when you begin exploring the different insurance policies out there. And the same goes for your inventory. If you have suddenly increased the level of inventory that you keep on premises, this is more that could be damaged or stolen, and you need the necessary coverage in place.

Anytime that income or inventory changes dramatically, you will want to take a look at your business insurance policy to determine if the coverage is still sufficient. If you have to file a claim because your warehouse was broken into and your entire inventory was stolen, you will want to make sure that the coverage allows full replacement – otherwise the policy is not sufficient enough to protect your finances.

Contact an Insurance Agent

Increasing your business insurance coverage is not something you have to do on your own. You can simply contact an independent insurance agent in order to get assistance. They will review all aspects of your business, help you determine risks, calculate the level of coverage you need, and more.

Independent agents don't work for one specific company and this is to your benefit. They will be able to explore policies from many of the different insurance companies that right policies in Florida. Cost comparisons will be done and this will allow you to get the necessary coverage at an affordable premium.