When you own or operate a small business, you're responsible to your clients, family, partners, and employees. To protect yourself and others against financial upheaval, develop a savvy business insurance plan. Below, you'll find a list of valuable tips to help you cover all of your bases and protect the business against different types of disasters.

5 Important Business Insurance Tips

1. Know Which Coverage Is Required

Speak with your agent to learn which types of coverage are required for your situation. For instance, in Missouri, you must carry workers’ compensation insurance if you have five or more employees (one or more employees in the construction industry). Also, if you operate one or more business vehicles, you are obligated to purchase minimum amounts of commercial auto insurance.

2. Don't Underinsure

Do not attempt to save money by underinsuring. For instance, make sure you maintain enough business, auto, and property liability to protect yourself fully in case of a lawsuit. Otherwise, If the worst should happen, the resulting legal fees could cripple you financially.

3. Insure Essential Workers

If one of your employees is responsible for large portion of your sales or has indispensable skills, consider "key employee" insurance. This protects you in case they have a sudden loss, and it can keep your business afloat until you can find a replacement.

4. Protect Your Partnership

If you operate a business with a partner, consider insuring each partner with enough of a death benefit to allow the surviving partner to buy out the deceased partner's share of the business. This ensures a smooth transition of ownership.

5. Don't Rely on a Homeowner Insurance Policy

If you run a home-based business, don't rely solely on your homeowner insurance policy to protect you. Purchase additional business insurance to make sure all of your commercial assets are covered. Your home insurance coverage may not include business equipment losses.

To adjust your business insurance coverage, or to see if you can lower your rates, contact us at Farmers Insurance Group in Mountain Grove, MO. Our experienced agents represent one of the most recognized carriers in the country and can help you design a policy that meets your business' needs and fits your budget. To request a quote, visit us online, or call (417) 926-7900 to speak to one of our friendly, helpful representatives.