Starting a business involves significant risk. While there’s no way to guarantee your new company’s success, you can take measures to protect your investment by purchasing business insurance. Below are some important factors to consider when choosing coverage.

How to Select the Right Business Insurance Policies

1. Assess Your Company’s Legal Needs

Depending on state laws and specifics about your company, there may be certain types of insurance your business is legally required to carry. For example, under North Carolina law, businesses with three or more employees must carry workers’ compensation. 

Once you know what coverage you need to satisfy legal mandates, you can choose to add on general liability coverage, commercial property coverage, and other types of business insurance. A qualified professional will be able to determine the policies that would be most beneficial.

2. Understand Your Industry

Your business will incur different risks depending on the services it offers. A restaurant or bar, for instance, won’t typically benefit from the same types of policies as a retail company such as a boutique or flower shop.

In order to adequately protect yourself against potential lawsuits, you need to determine if you’re more likely to need professional liability coverage, which covers the services you provide, or product liability coverage, which covers products distributed by your company.

3. Overestimate Your Coverage Needs

It’s important not to purchase too little when it comes to buying business insurance. While overestimating your needs may seem expensive at the outset, it will save you from financial strain in the long run.

Lawsuit expenses add up fast, and if you don’t have enough coverage to adequately protect your enterprise, you may end up spending thousands of dollars on legal services.

If you’re starting a company and in need of insurance, get in touch Mountcastle Insurance in Winston-Salem, NC. For over a century, this agency has been helping individuals, families, and businesses get the personalized coverage they need to protect what matters most in life. Visit their website to learn more, and call (336) 777-8500 to request a quote today.