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Risk Management Bulletin

Understanding Insurance Options Is the Key to Adequate Loss Protection

By April 1, 2015No Comments
Having adequate insurance is the best way to protect your business and your assets from most risk-related losses. But deciding how much coverage you need isn’t always easy. If you’re reviewing your insurance needs, here are a few tips to help make sure you get the right level of coverage:
* Ask your agent if they perform risk assessments as part of their duties. Many insurance companies provide no-cost risk assessments, and these tend to be a better option that doing it on your own. Why? Because experienced insurance brokers and agents work with lots of businesses just like yours, and they know the specific types of risks your business faces and the types of coverage you need to be protected. Keep a copy of the assessment in your records for future reference.
* Know the basic types of insurance. Important types of insurance to ask your agent about about include general liability, business auto, equipment breakdown, commercial liability, employment practices liability and worker’s compensation. Be sure to ask how much of each type is required by law, but don’t be bound by the minimum amounts; most businesses need far more than the recommended minimums.
* Understand the “extra” types of insurance that are available. While not necessarily required, additional insurance can provide you with greater peace of mind. Some types to consider include business interruption insurance, key person insurance, rental insurance, boiler and machinery insurance and cybercrime insurance.
* Don’t forget your employees. You can build employee loyalty by offering health insurance and retirement options. Group pricing combined with partial premium contributions from employees can help keep your costs low.
One last piece of advice: Be sure to review your insurance needs regularly at least once a year, and more often if your business needs change due to growth and expansion, new product rollout, changes in office space or facilities, an upgrade in equipment, marketing changes or other needs. Talking to your insurance agent is the best way to learn if you have enough coverage and to find out what you can do to help keep your premiums as low as possible.