What Level of Business Insurance Coverage Should I Get?

Business Insurance Coverage Levels, choosing business insurance

Last month, we discussed the various types of business insurance you may need as a business owner.  However, that was only part of the analysis.  It’s also important to know the levels of coverage that are needed for any policy you obtain.  How do you figure this out?  Here are some factors to consider:

Coverage v. Price:

Determine the best coverage for the price.  To put this simply, get multiple quotes from various carriers and insurance agents.  If you are in an industry group, you may want to get information from them on some key needs for your industry and general pricing.

Home-Based Business:

If your business is home based, check to see if your home policy could provide sufficient coverage.

Business Insurance Details:

While price is important, it is critical that you look at the exclusions and details of any quotes.

  1. Does it cover the areas that are needed for your business?
  2. Does it cover loss of use?
  3. Is the amount of coverage enough to cover any inventory or equipment?
  4. Would your data be protected should an accidental leak happen?
  5. How is your intellectual property protected?
  6. What employee liability are you covered for?
  7. Are all your endorsements included (i.e. special equipment, landlord etc)?

Choose the level that provides enough coverage to protect you in the types of emergencies that may threaten your business.

This may all seem very complicated but a quality insurance agent can help you navigate through these various factors.  Business insurance has many nuances and what you need will vary a lot by your industry. A company that has physical inventory will have different needs than one that has all its information on computers.  Also, depending on the exposure your business may have, a business umbrella policy may be required, so be sure to ask about that. Whether you are in San Ramon, Danville, Walnut Creek, San Francisco, or anywhere in California, you are welcome to contact Joyce Feldman Agency to answer your business insurance questions.