Many business owners want to buy an insurance policy and never think about again. We understand you have better things to focus your time on, so here are some business insurance tips to make sure you have the right coverage to protect your operation.
- Buy adequate property insurance coverage. Many property insurance policies contain a co-insurance provision that requires adequate insurance-to-value. To avoid a penalty at the time of a claim, make sure you have enough coverage to comply with the co-insurance percentage, typically 80% or 90%. Property insurance includes buildings, tenant improvements, inventory, furniture, fixtures, and equipment. Besides a co-insurance penalty, being underinsured could be financially devastating if you have a large claim.
- Consider business income insurance. Many commercial insurance policies do not automatically include coverage for loss of business income. This is often one of the most overlooked types of coverage and yet often one of the most valuable. Business income coverage pays for net income that is lost due to a claim, plus any reoccurring expenses such as payroll, utilities, and leases.
- Workers compensation is critical. If you hire sub-contractors of use independent contractors, do not assume you are exempt from workers compensation laws. Chances are you still meet the definition of a statutory employer and are required to provide workers compensation. Take a moment to read our blog posting about how exclusive remedy protects your business from employee injury claims.
- Hired and non-owned auto liability. Do you have employees that occasionally rent a vehicle for business use? Or, do your employees drive their personal vehicles on company errands? If so, consider adding hired and non-owned liability to your business insurance coverage. This can be added to a commercial auto policy or, in some cases, to your general liability coverage. The cost is surprisingly low and the coverage could be invaluable if an auto accident occurs.
- Keep your agent informed. Your business insurance policy is not an unchanging contract. It needs to be updated frequently to meet your needs. You should discuss any changes to business operations with your agent. We also recommend an annual review of your policies to make sure the coverage and rating factors are current.
These business insurance tips will help you develop an insurance plan that works for your company. Lastly, make sure you are working with an agent that understand Nevada business insurance. At Safeguard Insurance, we have been working with businesses of all sizes for over 17 years. We understand the needs of Nevada business owners and have the insurance programs to find you the right coverage at the right price. Contact us today for more information!