Owning a business involves a certain amount of risk. A new product may not generate the projected revenue, or local market conditions can lead to a sudden drop in demand for your services. Other risks, such as tornadoes, theft, or liability suits, can be even more dangerous, potentially wiping out the venture and the investments you’ve made. Fortunately, a well-rounded business insurance policy will insulate you from these risks and provide the resources you need to recover. Below are some of the protections your commercial coverage should include.
What a Business Insurance Policy Should Cover
1. Business Property Protection
Your equipment, supplies, inventory, and business location all represent substantial capital investment, which could be lost due to theft or a natural disaster. Business property insurance will pay to repair property damaged in a covered event and replace items that were totally destroyed.
2. Liability Coverage
If a visitor is injured on your property or hurt by a defective product, the resulting liability suit could put you out of business, even if you ultimately win in court. Liability coverage is a necessary part of any business insurance policy, compensating others for valid claims and covering the cost of your legal defense.
3. Business Auto Insurance
Any business with a fleet of vehicles needs a commercial auto insurance policy to minimize the risk of accident-related lawsuits. However, personal auto insurance policies usually exclude claims that occur while you’re working, so you might also need business insurance if you use a personal vehicle to make deliveries or meet with clients.
4. Income Replacement Insurance
If a fire destroys part of your building or a natural disaster strikes, will you have the cash on hand to meet your obligations until repairs are completed? According to FEMA, approximately 40% of small businesses never reopen after a disaster, and many more fail shortly afterward. Income replacement insurance ensures you can continue paying the bills until you’re ready to reopen.
5. Cyber Liability Insurance
Data thieves increasingly target small businesses, many of whom lack the resources and expertise to protect their most sensitive information. Having cyber liability coverage in your business insurance policy will help mitigate the damage if hackers steal your customers’ identities.
If you own a business in the Texas panhandle, Stidham Insurance Agency in Moore County, TX, offers top-of-the-line products and personalized service. Their team will carefully evaluate your finances, compare options from a variety of insurers, and find a business insurance policy tailored to your needs. Visit their website to learn how they can protect your company, follow their Facebook for more helpful tips, and call (806) 935-6888 today to request a free business insurance quote.