When your own livelihood and financial security is tied up with your business, you want to protect its status to the best of your ability. One of the most effective ways to do that is with business insurance. However, with a variety of providers and policies to choose from, use the guide below to make sure you have full coverage.

What to Keep in Mind When Purchasing Business Insurance

1. Your Industry's Risks

The types of coverage you need vary depending on the type of business and industry you are in. For example, accountants, doctors, and lawyers need professional liability coverage, which pays for losses they cause due to errors made in their professional capacity.

On the other hand, product manufacturers and retailers need product liability coverage, which pays for damages caused by defects in the products they make or sell. Consider where your business is vulnerable and discuss how to mitigate these risks with your business insurance agent. 

2. Coverage Limits & Deductible Amounts

The coverage limit is the total amount you can expect to receive for any type of claim, while the deductible is the amount you must pay toward a claim before the insurer must start contributing.

Together, these will let you know what your out-of-pocket costs could be given a serious lawsuit, property damage, or other type of insurance claim. If you are very risk-averse, consider raising the policy limit and lowering your deductible.

3. Employee Safety

In Arizona, all employers are required to buy workers' compensation insurance. This covers medical treatments for employees who suffer a workplace injury or illness and compensates workers for loss of income due to time off.

Failure to abide by this requirement could result in an injunction against you to cease business operations until you are fully compliant. This includes full- and part-time employees, except for domestic helpers who work within a home and a few other exclusions.

For expert assistance designing a business insurance policy that fits your situation, contact Insurance Savers in Phoenix, AZ. They have served clients in and around Maricopa County since 1999. In addition to business insurance, they also specialize in home, renters, motorcycle, and auto insurance. Call them at (602) 265-9311 to discuss your needs with an experienced agent or request an online insurance quote through their website.