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What is Business Insurance?

Business insurance comes in many forms and ultimately is just as important to a business plan as individual insurance products are to an individual’s financial plan.  Business insurance can be used to protect a company from service liabilities, protect the assets of the company, protect employees acting within the scope of their employment, as well as to continue business operations in the face of emergencies.  When dealing with the process of determining insurance needs it is also important to remember that policies and products need to be reviewed periodically to ensure they are still appropriate for the company. 

How does Business Insurance Work?

The business insurance selection and monitoring process consists of four components that should be reviewed annually to ensure proper and appropriate coverage. 

     1)  Initial Review

          a)  Company Property & Financials

               i)  What needs to be insured and what does not?

               ii)  How much money is available to pay for insurance

          b)  Required coverage

               i)  State,

               ii)Federal,

               iii)Industry

     2)  Product Selection

          a)  Vendor search

          b)  Fee considerations

          c)  Coverage restrictions

          d)  Customer services

     3)  Semi-Annual Reviews

          a)  Company Property & Financials

          b)  Determine if coverage is still appropriate

     4)  Annual Review

          a)  Vendor evaluation

          b)  Compare prices and coverage restrictions

Why are these products Important?

The cost of business insurance is really negligible considering the time, money, and expenses involved with handing business emergencies.  The process to determine what is needed and the choice of vendors is a personal decision based on your desired level of customer service and the flexibility you want from the products that are chosen.  The important thing to understand is that the needs of your company can change almost monthly so you must also make sure that the coverage you have is adjusted to address those changes.