Owning a business is both risky and rewarding. Although it gives you the opportunity to achieve your entrepreneurial goals, it requires a substantial financial investment. As such, it’s essential for your operations to be properly protected against disasters that have the potential to hinder your success. Consulting a knowledgeable business insurance agent will help ensure you secure the right coverage without paying more than necessary. Here are a few questions to ask them before buying a policy.

What to Discuss With Your Business Insurance Agent

1. What Are My Business Risks?

Every business is exposed to a variety of risks that can result in significant financial burden; however, some risks are industry-specific. The first step in deciding what coverage you need is thoroughly evaluating all the risk factors your company faces. Your insurance agent will help identify what these are, taking into account the nature of your operations, location, employees, and resources used to keep your organization running. 

2. What Type of Coverage Should I Consider? 

Once you know what dangers to protect your business from, you can explore which insurance products will offer the best coverage. In most cases, general liability is necessary for third party claims and lawsuits involving injury or property damage. If you operate out of a physical location, you’ll also need property insurance to cover damages to the structure and replace damaged or stolen equipment, furniture, and inventory. Additionally, in Alabama, employers with five or more employees are required to carry workers’ compensation insurance. 

3. How Much Coverage Do I Need?

Having the right amount of coverage is just as important as having the right type. To determine what your policy limits should be, make a list of all your business assets and calculate how much it would cost to replace everything should disaster strike. Also, take into account the probability of lost profits if you were forced to shut down your operations for any length of time due to a covered event. 

4. How Can I Keep Premiums Down?

Insurers will typically offer lower rates if you purchase multiple policies from the same company, add safety and security features to your business, and maintain a claims-free history. Your insurance agent will be able to find all the discounts you qualify for and make sure you have the most appropriate coverage to avoid overpaying.

If you’re looking for high quality and cost-effective business insurance solutions, reach out to Absolute Insurance Agency. They’ll take the time to carefully assess your unique coverage needs and help customize a suitable policy. Their team of insurance agents offers over 30 years of combined experience and is committed to providing the residents of Foley, AL, with personalized service and reliable protection. Call (251) 942-6837 to request a quote, or visit them online to learn more about the products they have available.