What Do I Need to Cover?
To determine what you need to cover, consider the following areas:
- Property Insurance: Covers physical assets like your building, equipment, inventory, and furniture.
- Liability Insurance: Protects against claims of injury or property damage that your business may cause to others.
- Business Interruption Insurance: Covers loss of income if your business is unable to operate due to a covered event.
- Workers' Compensation Insurance: Required in most states if you have employees, covering medical costs and lost wages for work-related injuries.
- Professional Liability Insurance: Also known as Errors and Omissions (E&O) insurance, it covers claims related to professional mistakes or negligence.
- Commercial Auto Insurance: If your business uses vehicles, this covers damages and liabilities involving those vehicles.
- Cyber Liability Insurance: Protects against data breaches and other cyber threats.
How Much Coverage Do I Need?
The amount of coverage depends on several factors:
- Value of Assets: Ensure your property insurance covers the replacement cost of your assets.
- Risk Exposure: Higher risk businesses (e.g., construction, manufacturing) may need more liability coverage.
- Revenue: Business interruption insurance should cover your revenue for a sufficient period to recover from a disruption.
- Employee Count: Workers' compensation coverage depends on the number of employees and the nature of their work.
Insurance by Industry
Operating a business is challenging. Cover yourself from all angles by reading our guide to insurances by industry — and get in touch with Domino Insurance to find the insurance plan that perfectly aligns with you business size and industry of expertise.
How to Choose the Best Carrier
When selecting an insurance carrier, consider the following:
- Financial Stability: Check the carrier’s financial ratings (e.g., A.M. Best, Moody’s) to ensure they can pay out claims.
- Coverage Options: Ensure they offer the specific types of coverage you need.
- Cost: Get quotes from multiple carriers to compare prices, but don’t sacrifice coverage quality for a lower price.
How to Read an Insurance Policy
Understanding an insurance policy can be daunting, but here are key sections to focus on:
- Declarations Page: Summarizes your coverage limits, premiums, and key details.
- Insuring Agreement: Describes what the insurance company agrees to cover.
- Exclusions: Lists what is not covered under the policy.
- Conditions: Outlines your responsibilities and the insurer’s obligations.
- Endorsements: Any additional coverages or changes to the standard policy.
Additional Tips
- Consult with an Agent: Working with an independent agent like Alex Domino can help you navigate these choices and tailor a policy to your specific needs.
- Regular Reviews: Periodically review your policies to ensure they still meet your business needs, especially as your business grows or changes.
