Chances are, you already protect the company you built with reliable business insurance. Such coverage is designed to protect your business from a wide range of threats, allowing you to focus on growing the company. However, if your business insurance growth does not match the growth of your company, you may be putting everything at risk. 

With any luck, your company has grown and evolved over the last few years. But with growing success comes growing business insurance needs, and if you have not changed your policy, you may be putting your company at risk. Why is this, and what can you do to protect yourself? Keep reading to discover why small business insurance coverage should evolve as your company grows. 

Why Business Insurance Isn’t “Set It and Forget It” 

Many entrepreneurs are slow to get coverage updates for their company. They typically think of business policies like automobile policies: something they can “set and forget” without worrying about making any changes. However, the needs of your business will change far sooner than those of your automobile, and failing to adjust your policy accordingly puts you at serious risk. This is why conducting periodic business insurance reviews is so important. 

The more your company grows, the more assets you have to protect and the more liability risk you must manage as part of your business insurance needs. Without changing your policy, an unexpected event (such as a fire or a lawsuit) could saddle you with major debt thanks to the considerable out-of-pocket expense. By adjusting your policy over time, however, you can mitigate the risk while giving yourself considerable peace of mind. 

How Business Growth Changes Risk Exposure 

Business insurance growth is a consequence of running a successful business. Success can increase your risk in many ways, including your risk of getting sued. That is because, after a few years of operations, your business liability exposure is greater than ever before. 

Think of it this way: the more customers you have, the greater the chance that one of them will sue you over something they believe is your fault. A successful business has more customers than an unsuccessful one, but each of those customers represents a potential lawsuit. Fortunately, good commercial coverage helps cover your legal costs if any of your growing number of customers decides to sue. 

Common Growth Milestones That Affect Insurance Needs 

You cannot keep the same commercial policy over time. As your business changes, you need to make adjustments that reflect your company’s evolution. But how do you know when you need to contact the carrier and make changes? 

Certain milestones represent the ideal time to make changes to commercial policies. These milestones include hiring employees, expanding operations, offering new services, and purchasing equipment. Below, you will discover more about these milestones and why they are so important. 

Hiring Employees 

If you employ others, you are required to have workers’ compensation insurance. You will need to obtain it after hiring your first employees. When you hire additional workers later on, consider making additional adjustments to help provide for your employees and abide by state regulations. 

Expanding Locations 

Expanding your business into another state typically means obtaining more commercial coverage for your second property. Additionally, if you expand into another state, you may need to make further changes to comply with its specific commercial regulations. 

Offering New Services 

Offering new services may increase your profit margin, but it may similarly increase your operational risk. Depending on the services, you may be increasing your potential liability. Before launching the new service, consult with your carrier to see whether you require any coverage updates for your business insurance needs. 

Purchasing Equipment 

Buying new equipment may require business insurance growth so that you can properly protect all of your assets while expanding operations. Plus, if you purchase a vehicle to use for business purposes, you will need to obtain commercial automobile coverage. 

Where Coverage Gaps Often Appear 

The growth of your business may lead to unexpected coverage gaps in equally unexpected places. For example, you may have good commercial property protection, but the fine print will dictate whether it will help you repair the new equipment you just bought to upgrade your company. Plus, you may discover only after you begin your high-tech company upgrade that your policy does not cover cybercrime. 

The bad news is that no business policy can cover all of your needs without significant changes over time. The good news is that you can make those changes at any time. If you are unhappy with your current carrier, you can always switch to a new one. In this way, you can find a provider who can tailor policies to your unique needs while providing top-notch customer service. 

When Business Owners Should Review Their Insurance 

The milestones above offer great guidance on when entrepreneurs should consider updating their commercial coverage. However, even if you do not necessarily meet any of these specific milestones, it is important to regularly conduct a general business insurance review to see if any coverage updates are now needed. That is because your needs may still have changed over time, and you can obtain free quotes and switch carriers at any time. 

Because of this, it is recommended that you audit your current insurance at least once a year. You can get as many quotes as you want before switching, giving you time to find a plan better suited to your entrepreneurial needs. There is always a possibility that you will not be able to find a better plan than what you currently have, but it never hurts to look. After all, this is the best way to give yourself the peace of mind you deserve while reducing business liability exposure. 

How the Right Coverage Supports Long-Term Growth 

If you own a business, it is easy to think of commercial coverage as a way to maintain the status quo and reduce your operational risks. However, a good policy can do more than just maintain what you have built. By tailoring policies to your exact commercial insurance needs, you can support long-term growth. 

For example, adding policies such as business interruption coverage ensures that you will not lose any momentum you have built, even in the face of disaster. Additionally, adding commercial vehicle coverage can help you cover more of the town and ultimately help you expand. Finally, traditional coverage can help protect any new equipment you have purchased and any renovations you have made, which can help you better service your community and expand your business. 

Coverage That Grows with Your Business 

Now you know why business insurance growth goes hand in hand with the growth of your company. You know which milestones require adjusting your policy and which changes can help protect everything you have built. But do you know where you can find a carrier just as invested in your company as you are? 

At InsureOne, we know it takes plenty of courage to start your own business. When you are ready to give your company the protection it needs from a carrier that respects your vision, come get a quote online. You can also pick up the phone and give us a quick call at 800-836-2240 to experience the customer service you have been dreaming of. Of course, if you want to sit down for a chat with one of our friendly agents, feel free to come find an InsureOne office near you. 

FAQs 

Does Business Growth Always Increase Insurance Costs? 

The growth of your business will almost always require greater commercial insurance needs to match your rising operational risks. However, after scaling a business to a sufficient size, you may be able to qualify for volume discounts. And companies of all sizes may be able to save on their monthly premiums by switching to a better insurance plan. 

Is Business Insurance Only About Compliance? 

Your small business insurance coverage helps meet compliance requirements for companies that employ workers, use commercial vehicles, or are required to have liability protection. However, such policies offer benefits beyond compliance, including financial protection and industry-specific risk management. 

Can Business Insurance Changes Be Made Mid-Policy? 

As your commercial insurance needs change, you can make adjustments to your existing policy at any time. Furthermore, if you cannot find what you are looking for at your current carrier, you can get free quotes and switch to a provider such as InsureOne at any time, which is often the best approach when scaling a business. 

Does Business Insurance Need to Change If Revenue Increases but Operations Stay the Same? 

Yes, you should still expand your small business coverage if revenue increases, even if you have not had to worry about expanding operations. Increased revenue means you are dealing with more customers, increasing your liability risk. Basically, increased success means increased business liability exposure, and it is important for successful entrepreneurs to protect their investment with the appropriate level of commercial coverage. 

Does Expanding to a New State Affect Insurance Coverage? 

Scaling a business into another state will almost certainly affect small business insurance coverage. That is because different states may have different compliance requirements regarding things like workers’ compensation and commercial automobile coverage. Because of this, it is important to conduct a thorough business insurance review long before you expand. 

If you own a company, you must decide whether to protect it with commercial umbrella insurance or general liability insurance. Each of these policies offers unique benefits and drawbacks. However, if you do not know what they are, you may not be able to give your company the protection it deserves. 

How do each of these policies work? What can they offer you, and which one is right for your business? To answer all of these questions and more, we have put together the ultimate commercial insurance comparison. Keep reading to discover everything you need to know about keeping your company safe, no matter what. 

What Is Liability Insurance? 

Commercial liability insurance is the most common kind of commercial policy. It is used by entrepreneurs to protect their business against claims of wrongdoing. These policies can help prevent you from having to go to court. And if you still end up getting sued, they can cover your legal fees and keep your company in business. 

With that being said, there are multiple kinds of coverage from which to choose. You need to know about the different types of policies you can choose from, as well as liability limits and excess liability coverage. Only then will you be able to tailor business insurance to your unique needs. 

Types of Liability Coverage (General, Professional, Product) 

General liability insurance protects your business against claims of personal injury, bodily injury, and property damage; if someone thinks you are liable for causing such damage, this policy will help pay for settlements you make as well as your legal fees. Meanwhile, professional policies protect against mistakes you might make in rendering services, which is why they are sometimes called “errors and omissions” policies. And product policies are designed to protect against claims that the products you make have caused bodily or property damage. 

Typical Limits and What They Cover 

Liability limits determine how much a policy will pay out, and any damages beyond that amount must be paid as out-of-pocket expenses. Small businesses typically get $1 million in coverage for occurrence and $2 million for aggregate. This means that they can receive up to $1 million in payout for a single event, but cannot receive more than $2 million for the length of the policy. 

What Is Commercial Umbrella Insurance? 

An umbrella policy is a companion piece to your existing liability insurance coverage. In short, it is designed to provide you with excess liability coverage that will pay for damages exceeding your general coverage. 

How does this work, though? And what are some common scenarios where businesses just like your own would benefit from commercial umbrella insurance? Below, you will find all of the answers to these questions. 

How Umbrella Coverage Extends Beyond Liability Limits 

An umbrella policy has its own limits, but it will not pay out on any claim until your standard commercial coverage is exhausted. So, if your liability policy maxes out at $100,000 and the damages total $120,000, the remaining $20,000 would come from your umbrella policy. Otherwise, you would have to pay that amount out of pocket after you reach the limits of your standard policy. 

Common Scenarios Where Umbrella Insurance Helps 

If you own a physical business, such as a store or restaurant, a customer might fall down and sue you for expenses such as medical bills and lost wages. The lawyers may agree to a settlement of $1.5 million, but your commercial policy will not pay more than $1 million per occurrence. 

But if you have a supplemental policy, you will not have to worry about providing an additional half a million out of pocket. Remember, this is just one of many common liability claims that require umbrella insurance coverage. 

Key Differences Between Umbrella and Liability Insurance 

Obviously, these types of policies are closely related. But to understand exactly what your business needs, it is important to know the key differences between liability vs. umbrella. This includes both the coverage limits and the scope of these different policies. 

Additionally, you need to know exactly when your supplemental policy would kick in and the cost of each policy. Only then can you decide whether you need both kinds of protection or whether your business simply needs commercial liability insurance. 

Coverage Limits and Scope 

Business insurance coverage limits differ by policy. For example, a commercial liability policy usually has an annual limit of $2 million and will pay out if you are held liable for things like bodily damage and property damage. A commercial umbrella policy, however, typically has a limit ranging from $1 million to $5 million, and it will only pay out on a claim once your standard coverage is completely exhausted. 

When Umbrella Insurance Kicks In 

An umbrella policy functions as a kind of asset protection insurance, keeping you from having to sell off key assets in order to pay major out-of-pocket costs. It kicks in after your existing liability coverage has been used up. 

Cost Comparison 

Commercial liability insurance for businesses typically starts around $500 per year and goes up depending on your business. Umbrella policies are often cheaper (usually costing no more than $300 a year), making it very affordable to add to existing policies. 

Why Businesses and Families Might Need Both 

When learning more about umbrella and liability policies, you may be wondering which one to select for your business or family. However, you should know that umbrella coverage cannot be purchased as a completely separate entity. Instead, you must already have some form of liability coverage in place for the new policy to supplement. 

With that being said, businesses and families alike are better off with both forms of coverage. Having this double layer of protection can offer the peace of mind you deserve. Furthermore, it can help to protect your current assets and your future earnings. 

Real-Life Examples of Claims Exceeding Liability Limits 

Many think there is no way they would ever exceed their current liability limits. However, it happens more often than you might think when customers slip and fall (or get injured another way) at your business. That is because they may not just sue for medical bills: They may also sue over things like loss of work, potential lifelong disability, and compensation for their pain and suffering. This can easily exceed $1 million, forcing you to pay any amount over your limit out of pocket. 

Protecting Assets and Future Earnings 

If you have to pay out of pocket once liability coverage is exhausted, you may be on the hook for hundreds of thousands of dollars. Paying this amount often requires people to sell valuable assets like homes, and they may lose future earnings once their wages are garnished. In this way, umbrella policies protect your future by ensuring you will not have to sacrifice your house and years of future income over a single claim. 

Protect Your Business with the Right Coverage Today 

Now you know more about umbrella insurance and liability insurance. This includes how each policy works and what they can both do to protect your company. But do you know where you can find a carrier who cares about your company just as much as you do? 

Here at InsureOne, we specialize in protecting hardworking entrepreneurs just like yourself. When you are ready to give your business the protection it deserves, come get a quote online. If you would rather speak to one of our trained agents, you can also pick up the phone and give us a quick call at 800-836-2240. Finally, do not hesitate to come find an InsureOne office near you. 

FAQs 

Is Umbrella Insurance Only for Businesses? 

Umbrella policies are not limited to businesses. In fact, many individuals enjoy having such a policy because it will pay out in the event a claim fully exhausts the liability limits of their homeowners or automobile coverage. 

Can Umbrella Insurance Cover Personal Assets? 

An umbrella policy does not directly protect your personal assets. However, it supplements existing liability coverage and can help protect assets such as a home or car that might be threatened if you had to otherwise pay significant out-of-pocket fees. 

How Much Umbrella Coverage Do I Need? 

Most small businesses get between $1 and $5 million in commercial umbrella coverage. It is best to discuss the matter with a trustworthy carrier like InsureOne to figure out what works best and potentially customize a commercial package policy. 

Does Liability Insurance Cover Lawsuits? 

A liability policy will cover legal fees up to a certain limit, which offers financial protection to those getting sued. If the fees exceed the limit of your standard commercial coverage, you will have to pay them out of pocket unless you have an umbrella policy. 

Are Umbrella Policies Expensive? 

Most umbrella policies only cost a few hundred dollars a year, which is a small price to pay for millions of dollars’ worth of asset protection insurance. Remember, getting multiple quotes and doing a commercial insurance comparison is the best way to save on your premiums each month. 

If you are an entrepreneur, you may not think you need much protection. However, it is vitally important to obtain reliable business insurance. Such a policy can protect things like your workplace and your equipment, but it can also protect something else entrepreneurs rarely worry about: intellectual property and trade secrets. 

Someone running off with your IP or other valuable information could instantly sink your company. Fortunately, all it takes is the right policy to effectively futureproof your commercial endeavors. To start preparing for tomorrow today, keep reading to discover how business insurance protects your intellectual property and trade secrets. 

What Is Intellectual Property and Why Does It Need Protection? 

A good policy can provide intellectual property insurance. But what is IP, exactly? In short, this term refers to anything a person has created and that they can legally apply for — things like copyrights, patents, and trademarks. Afterward, the original creator must protect their IP and can take those who try to steal their work to court. 

But how do these different types of IP protections work? And what are the risks facing those who do not know how to protect trade secrets? Keep reading to find out. 

The Different Types of Intellectual Property (Patents, Trademarks, Copyrights) 

Copyright generally applies to physical works such as books, songs, and art. Trademarks may come in the form of words, phrases, symbols, or designs, and they help distinguish the work of one creator from another. Finally, patents apply to inventions, both brand-new inventions and significant improvements upon existing technology and processes. 

Common Risks and Threats to Intellectual Property 

Protecting business assets with insurance is important because your IP is at more risk than you might think. It is very easy for employees or contractors to steal your ideas. Other companies may try to poach your IP, and whether or not it is true, some of those companies may take you to court for stealing their own intellectual property. In many cases, this can have an even deeper impact than natural disasters. 

How Business Insurance Protects Your Intellectual Property 

Commercial insurance for intellectual property is important for every entrepreneur. That is because it helps you to protect your IP when someone tries to make a profit off your good ideas. 

How, though, do things like business liability insurance help to protect your most valuable ideas? Below, you will find answers to your questions, and these answers might just save your company. 

The Role of General Liability Insurance in Protecting IP 

One of the primary reasons intellectual property insurance is so important is that other companies might take you to court for allegedly stealing their IP. In these instances, business liability insurance can cover your legal costs, helping you defend your good name without having to pay major out-of-pocket expenses. This is just the tip of the iceberg of why liability protection is vital for your business. 

How Business Interruption Coverage Can Help When IP Is Stolen or Compromised 

Protecting business assets with insurance is important because it gives you interruption coverage that covers lost income if you are forced to temporarily shut down. If your IP is stolen or compromised, you may be out of work for a long time. But when you have commercial insurance for intellectual property, you can count on business interruption insurance during a crisis. 

Protecting Your Trade Secrets with the Right Business Insurance 

Trade secrets generally refer to any form of information that helps one business stay competitive against other businesses. As an entrepreneur, you must know how to protect trade secrets because rivals may try to steal yours. Fortunately, a good commercial policy offers the trade secret protection coverage you deserve. 

Business insurance for small businesses just like your own helps little ideas grow into a big success. To make the most out of it, though, you need to know more about what trade secrets are and how the digital age has transformed the commercial landscape. 

What Constitutes a Trade Secret and Why It Is Important to Protect 

There are two primary components to all trade secrets: The secret must be valuable, and the company holding it must make reasonable efforts to protect the secrecy. Should someone steal any of your own trade secrets, they can leverage the value of those secrets to grow their own company. And in the competitive world of modern commerce, they might very well put you out of business if you do not have the benefit of trade secret protection insurance. 

How Cyber Liability Insurance Can Safeguard Digital Trade Secrets 

InsureOne business insurance offers cyber liability protection. Trade secrets and IP info are often stolen through data breaches and other malicious hacks. Fortunately, business coverage for intellectual property can cover lost income, the cost of retrieving data, the cost of repairs, and more. And by customizing the policy to your exact needs, you can maximize protection for when you need it the most. 

Protect Your Intellectual Property and Trade Secrets 

Now you know how business insurance for intellectual property works. This includes what the policy covers, how it protects IP and trade secrets, and why that protection is so important. But do you know where you can find the policy perfect for both you and your company? 

InsureOne business insurance is more than just another policy. At InsureOne, we specialize in protecting your business just like you would. When you are ready to give your company the best possible protection, simply get a quote online. You can also pick up the phone and give us a quick call at 800-836-2240. Finally, feel free to come find an InsureOne office near you. 

You may not think that could happen, but if you don’t have reliable general liability insurance, it’s entirely possible. This coverage protects you from those who might try to sue your business into the ground. Unfortunately, many business owners don’t realize how much damage they could be liable for on a daily basis. 

That’s why we put together this simple guide to practical examples of how liability insurance can keep a company in business. Keep reading to discover how to protect your own company. 

1. Customers Slipping and Falling Outside Your Store 

One of the most common kinds of accidents involves customers slipping and falling. It happens more than you might think around stairs: If a customer thinks they fell down because the stairs leading up to your front door are in poor repair, they may hold you liable for any bodily injury and medical costs they sustain. 

Even if you successfully defend yourself in court, out-of-pocket legal costs for your defense could put you out of business for good. When you have commercial liability insurance in place, you won’t have to worry about customers falling down and taking your company with them! 

2. When a Simple Catering Job Goes Sideways 

Catering is another one of those jobs where it may be difficult to imagine someone getting injured and thinking you’re at fault, but it happens all the time. For example, let’s say you are catering a wedding and getting the hot food ready at the venue. If one of the chafing stations sets a napkin or tablecloth on fire, then the venue could get seriously damaged even if the fire is quickly contained and extinguished. 

In this scenario, the venue would most likely hold you liable for the damage, and the cost of repairs could be astronomical. 

3. A Customer Slips on an Extension Cord in Your Waiting Room 

It may be hard to imagine a customer getting hurt in a medical office waiting room. After all, most of them got hurt before they entered your office. These rooms still need to be cleaned, and all it takes is someone tripping over an extension cord for a major injury to occur. 

In this example, such a customer may easily break their hand and bruise their face. If they hold you liable, you could be paying for their medical care rather than the other way around. With solid coverage in place, you’ll never have to worry about such unexpected accidents impacting your business. 

4. A Buyer Hurts Themselves with a Product from Your Etsy Store 

For many entrepreneurs, Etsy has proven to be something of a game-changer. It’s possible to design and sell your own products from home, creating a thriving business along the way. And since you don’t have a physical storefront or personally interact with customers, you may think you don’t have to worry about liability. 

However, it’s easier than you might think for a customer to hurt themselves using your product, such as somebody burning themselves with coffee while using the pot you designed and sold. You could be held liable if they think it had a faulty design. With product liability insurance, you don’t have to worry about a simple mistake destroying the online business you worked so hard to create. 

5. When a Jogger Hurts Themselves in Your Parking Lot 

Entrepreneurs tend to think mostly about risk management when it comes to the interior of their businesses. Let’s imagine that your office is closed at the end of the day, and you are loading equipment into your car. At this exact moment, a jogger comes by and, not seeing the equipment, trips over something and ends up breaking an arm. 

Believe it or not, you could be liable for their medical costs (which is especially grating when you think the jogger should be watching where they are going). If you have coverage from a reputable insurance carrier, you won’t have to worry about the jogger’s medical costs draining your bank account. 

6. A Customer’s Product Gets Stained at Your Salon 

Those who run a salon often don’t worry about liability issues, but they are actually quite common. For example, let’s say you or one of your workers is busy giving someone a manicure. Suddenly, without warning, a bottle of nail polish crashes to the ground. 

Sounds like a simple clean-up, right? However, if the nail polish ends up staining a customer’s expensive shoes or handbag, they may try to hold you responsible. Rather than the customer paying for the manicure, you might be liable for hundreds or even thousands of dollars in damages. When you have legal liability protection, you don’t have to worry about a simple accident ending your business. 

7. A Late-Night Customer Slips on the Floors You Just Mopped 

If you run a retail storefront, then you may be tempted to begin mopping the floors before you close. Furthermore, you may imagine it is sufficient to simply put out a sign warning customers of a wet floor. 

However, late-night customers may not see the sign, and they could slip and injure themselves. Such customers may consider you liable and try to sue. Fortunately, with the right professional liability coverage, you’ll have the legal protection you need. And just like that, you don’t have to worry that your business will come crashing down just because you started mopping early. 

Protect Yourself and Your Business Today with the Best Commercial Insurance 

Now you know more about the kinds of general liability success stories that keep entrepreneurs in business. But do you know who can help protect your business from all of these scenarios and more? 

Here at InsureOne, we specialize in protecting entrepreneurs like yourself from liability issues that could spell the end of your business. Ready to discover how we can help protect both you and your business? It’s easy to get a quote online. Alternatively, you can pick up the phone and give us a quick call at 800-836-2240. Finally, feel free to come into one of our convenient nearby offices. 

That’s what can happen to any entrepreneur who doesn’t take the steps to protect themselves and their business. Because without the protection that comes from liability coverage, all it takes is a single accident to land you in court, where the out-of-pocket costs may very well destroy your business. 

Fortunately, you can protect your own company with good commercial liability coverage. However, many business owners are still on the fence about this matter. Not sure whether you need to pull the trigger and get this coverage? Keep reading to find out why you can’t afford to skip it! 

Commercial Insurance: Cheaper Than You Think 

Running a successful company means looking out for the bottom line. Because of that, some new entrepreneurs skip out on commercial insurance because they worry about the added monthly costs on top of the normal expenses of doing business. 

However, you might be surprised at just how cheap the monthly premium is. For example, general liability insurance costs an average of only $42 per month. If you have a newer, smaller business, you’ll very likely pay even less. 

As you can see, protecting your business doesn’t mean you have to break the bank. With the following breakdown, you’ll discover why this is such a small price to pay for your peace of mind as a business owner. 

How Much Liability Coverage Do I Need? 

Exactly how much you pay for your premium will depend on many factors, including how much coverage you have. But that brings us to a big question: how much liability coverage do you actually need? 

Most businesses (even smaller ones) are better off having one million dollars in coverage. This means that the carrier would pay up to that amount related to a single claim. That may sound like a lot, but as we’re about to review, even simple or minor injuries can lead to expensive headaches for business owners. 

Protection From Bodily Injury Claims 

One of the best things about commercial liability coverage is that it helps protect you against bodily injury claims. Such claims are very common. For example, let’s say that a customer slips and falls at your business and decides to sue you over it. 

The average cost of such a claim is $20,000. If things make it as far as court, those costs go even higher (more on this in a minute). But as long as you have the right insurance in your corner, you won’t have to worry about such a lawsuit sinking your business. 

Protection From Reputational Harm 

In the age of social media, businesses need to be more careful about the risk of reputational harm. It’s not enough just to watch out for your own business. You also have to worry about saying or doing something online that will cause another company to sue you over reputational harm (just another way of making it difficult to protect your brand in the digital age). 

If that sounds farfetched, keep in mind that all a competitor has to do is get upset with a Facebook post or a TikTok video you create to go after you in court. To make matters worse, the average cost of a reputational harm lawsuit is $50,000, but those are costs you can avoid with the right coverage. 

The Cost of Hiring a Lawyer Out-of-Pocket 

Ever notice how so many high-profile lawsuits you hear about end up settling out-of-court? There’s a reason for that: going to court can be very expensive even when you win a case, and you never have a way of knowing if the case will go your way or not. 

Long story short? If your business is facing a lawsuit, you’ll need to hire a lawyer who, with any luck, will keep you out of court. That means you’re probably going to pay $100 an hour or more for a good lawyer. Those hours can add up when you have to pay out of pocket, but commercial liability insurance will pay for the costs of your legal defense. 

The Overall Cost of Defending Yourself in Court 

Remember when we said you generally want to avoid going to court whenever possible? There’s a reason for that, too: court costs may easily hit $75,000 or more. Even if you can get the other party to drop a lawsuit altogether, you may owe thousands in unexpected legal costs. 

Just as liability insurance helps to pay for your legal counsel, it also helps pay for your court costs. For many businesses (especially smaller ones) that end up going to court, this insurance is the difference between the company staying afloat or going under. That’s because even successfully defending yourself in court can bankrupt your business if you’re paying out of pocket. But when you have the right liability coverage, you can rest assured that your legal costs, all the way from consultations to court dates, will be covered. 

Of course, this means you’re effectively trusting the insurance carrier to protect your business. That means it’s worth taking the time to find a carrier that will treat you right. 

Get the Best Commercial Liability Insurance Today! 

Now you know why, by the numbers, commercial insurance is so important. But do you know who can provide the coverage you need at the prices you want? 

At InsureOne, we specialize in protecting businesses just like yours. We are always ready for you to get a quote online. Alternatively, you can pick up the phone and give us a quick call at 800-836-2240, or feel free to come into one of our nearby offices at your earliest convenience! 

This is what many businesses discover after they perform inventory — that items have been stolen. Worse, the owner and employees don’t realize anything was gone until long after the thieves have gotten away. 

If you want to protect your profits, preventing theft proactively is just as important as good commercial insurance. Want to keep your own company safe? Keep reading to discover how you can foil thieves! 

1. Make Eye Contact With Visitors 

Believe it or not, one of the best ways you can prevent theft is to make eye contact with anyone who visits your establishment. Because of this, you need to train your staff to make regular eye contact as a standard operating procedure. 

Why is this so important? To begin with, eye contact followed by a short greeting is a standard element of customer service…no honest shoppers want to feel like they are being ignored! As for would-be thieves, they are likely to strike when they think nobody is paying attention. By making eye contact with all visitors, you offer a subtle reminder that you are paying close attention to them and that would-be thieves should take their criminal behavior elsewhere. 

2. Install a Good Alarm 

While eye contact is very important, most businesses can’t have somebody minding the store 24/7. It’s not a coincidence that many burglaries happen at night after everyone has gone home for the day. To foil such burglars, it’s important for good entrepreneurs to install an alarm system. 

It’s up to you whether you want to buy and set up an alarm on your own or if you’d like to contact the services of a local security company. As long as you have a central monitoring system in place and can check on the status of your company via mobile device, then you can rest assured that your establishment has the protection that it deserves. 

3. Limit Access Where Needed 

We’ve already established that thieves don’t usually commit criminal activity when someone is watching them. The more savvy criminals know they are likely being watched by cameras (more on cameras soon). Because of these things, would-be thieves normally try to find areas where nobody can see what they are doing. 

To keep this from happening, you need to limit certain areas. For example, lock dressing rooms when they aren’t in use and don’t be afraid to establish an employee-only restroom. While you’re at it, make sure access to the manager’s office and any important rooms (such as storage rooms) are locked, ideally with a passcode that nefarious visitors would have no way of guessing. 

4. Check Doors and Windows Before You Leave 

Most burglars don’t have anything personal against the stores they rob. In fact, burglary targets are usually picked out because the criminal is checking for unlocked doors and windows and gets lucky. In short, whichever store was sloppy about closing up that night is likeliest to get stolen from. 

The good news is that you can avert this by simply checking on all the doors and windows before you leave (or making sure somebody else does if you’re not the last person out). While you’re at it, make sure that your own vehicle outside is locked and that you don’t have any important keys visible on the dashboard or on your seats. After all, the last thing you want to do is lock everything up and then leave the keys in plain sight of a criminal! 

5. Install Cameras (and Let Everyone Know They Are in Use) 

There is perhaps no better way to stop theft inside an establishment than installing security cameras. For best results, you should use CCTV cameras that allow you to store the footage offsite so you can review it later. Such cameras need to be installed in the right locations so you can keep a good eye on both your customers and your workers. 

You shouldn’t hide these cameras. In fact, we recommend installing signs telling everyone that your business is being monitored at all times. As we noted before, most thieves are criminals of opportunity, and if they see your business is protected by high-tech cameras, they are likely to move on to a safer target. As a bonus, these cameras may help prevent liability lawsuits. 

6. Never Skip Background Checks When Hiring 

So far, we have mostly been focusing on how to keep outside visitors from stealing from you. But make no mistake: Employees often steal from their employers. This ranges from mild things like stealing an occasional stapler all the way to trying to run away with the money you were planning to deposit at the bank. 

While it’s not foolproof, the best way you can avert potential employee theft is to conduct thorough background checks on everyone you hire. This includes everyone from your latest customer service specialists to any local contractors you plan on working with. While it takes a bit of extra time and money, background checks are a real win/win for you: They help you prevent theft because many would-be criminals won’t apply, all while helping you hire the best possible workers who may, for example, be responsible for operating vehicles and other heavy machinery. 

7. Make Sure Exterior Areas Are Well Lit 

Remember when we said most burglaries happen at night? The reason for this is simple: When people are doing any criminal activity and don’t want to get caught, darkness is easier for them to hide in, making good lighting a good insurance policy for your company. 

While you can’t turn off the night, you can drive away the darkness by installing good lighting, particularly around entryways like doors and windows. If you don’t want the lights running all night, consider installing motion-sensitive lights. Either way, once thieves see you’ve left them no place to hide, they will be likely to move on to a different target. 

Protect Your Business With the Right Insurance Today! 

At InsureOne, we’re here to help companies like yours to grow and thrive. We’re always ready for you to get a quote online. Alternatively, you can give us a quick call at 800-836-2240 or feel free to come into one of our nearby offices at your earliest convenience! 

When your business gets successful enough, you’ll need to eventually expand to a second location. While that’s a sign of a healthy business, many entrepreneurs don’t realize how opening a second location affects their commercial insurance.  

If you don’t have proper coverage, then you may be a single accident away from losing it all. How does a second location affect your coverage, and how can you know whether you have enough protection? Keep reading to discover the answers! 

1. More Things to Cover 

The primary way that opening a second location affects your commercial policy is that you now have more structures and property you need to insure. For example, if the new property is an exact copy of the old property, you now have twice as many things to insure. 

Remember that the situation may vary for many business owners. For example, if the second location is smaller or otherwise doesn’t have as much important property in it, it may not require as much business coverage as your first location. But if the new property is somewhere dangerous, you may need more coverage, and if it’s in another state, you may need a new carrier altogether. 

2. Changing Your Policy 

You do not necessarily need to take out a second commercial insurance policy to cover a second location. Instead, it may be sufficient to simply increase coverage under your existing plan. 

Once you have a second property, it’s never enough to keep your plan exactly as it was before. If you do so, then you won’t have enough coverage for a second building and a second set of equipment. As we noted before, insufficient coverage means you might be one accident away from losing your entire business! 

We recommend consulting with your existing carrier about the best way to cover the second property while also getting quotes from different companies. By negotiating with your current carrier and shopping around for different commercial plans, you can get the best coverage at the best rates. 

3. Raising Your Premiums 

You will most definitely pay more for commercial insurance after opening a second location. This is because you have more structures and property to cover. 

This holds true whether you adjust your current policy for both locations or you take out a second policy altogether. While negotiations and shopping around can help you save more money, it will also be more expensive to cover two locations than one. 

4. Changing Coverage Type 

It may be worth asking your current carrier whether they offer a blanket or commercial package plan. Such a policy helps protect multiple properties run by a single business, and that may be the best solution for your needs. 

These are the policies used by franchises, apartment complexes, and any place else that needs to cover multiple properties using the same company. While blanket coverage isn’t for everyone, it can be a real benefit, especially if you think you may expand to a third property (or beyond) in the future. 

5. The New Location May Be More Expensive To Insure 

The actual neighborhood where your second location does business may drive your commercial premiums up or down. It all comes down to whether the carrier thinks this is a safe neighborhood or not. 

What does that mean, practically speaking? Basically, if a certain zip code has a higher number of claims, then premiums are higher. For example, if there have been many claims due to neighborhood robberies, your second property may be more expensive to cover because, statistically speaking, it’s likelier to get robbed. 

Fortunately, the reverse holds true: If your second location is in a safe neighborhood, it can help to keep your premium low. Unless your business is fully online, be mindful of location, location, location when it comes to insurance! 

6. New State? New Insurance 

Most businesses expand by opening their second location somewhere in town. If your second location will be in another state, though, you may have no option but to take out a separate policy from a separate carrier. 

There are two primary reasons for this. For one thing, different states have different rules regarding commercial policies, so you may face legal hurdles trying to use the same carrier. Even if there are no legal hurdles, the second reason is that there is a chance your existing carrier does not offer coverage in the state where your new building is located. 

The Importance of Reviewing Your Policies Each Year 

If you’re reading this, it’s because you are interested in giving your second location the coverage it deserves. However, take it from us: It’s worth reassessing your needs each year, whether or not your business is expanding. 

That’s because businesses change all the time. You may have different commercial needs from year to year, and those needs aren’t being met if you just stick with your old plan. But if you honestly assess how your needs have changed over time, you can get a better plan and even a better carrier to protect your growing business. 

Protect Your Second Location with the Best Coverage Today! 

Now you know how opening a second location affects your commercial insurance. But do you know where you can find the best coverage for your growing company? 

At InsureOne, we’re here to help your business thrive. We are always ready for you to get a quote online. Alternatively, you can pick up the phone and give us a quick call at 800-836-2240. Finally, feel free to come into one of our nearby offices at your earliest convenience! 

However, it’s never too early to start planning how to protect the business you are building. One of the best ways to do so is through commercial insurance. Despite this, many entrepreneurs don’t know enough about commercial insurance, and this puts their business at risk. 

Just what do you need to know about commercial insurance, and how will it protect your business? Keep reading to discover the answers! 

What is Commercial Insurance? 

Commercial insurance offers specialized insurance protection for a business. This insurance helps protect your business against things like theft, liability, employee injuries, property damage, and workers’ compensation claims. 

On a basic level, this insurance is the business-centric version of coverage that you already have in your personal life. For example, we protect our automobiles with car insurance and we protect our homes with home insurance. 

What sometimes confuses new business owners, though, are the many different types of commercial insurance that are available. Chances are that you need some of this coverage but not all of it. So, let’s take a closer look at the different types of commercial insurance and what they can do for you and your business. 

Different Types of Commercial Insurance 

In your own life, you probably only have a few different insurance policies. That’s because there are only so many things (such as your home and your car) that need this level of specialized protection. 

When you run a business, you have to balance many different moving parts. Insuring those parts takes the right coverage. Here are the different forms of commercial insurance; use this guide to determine which coverage is right for you. 

• Commercial Property 

Commercial property insurance helps protect property that you own or lease for your business. In addition to protecting the structure, this insurance helps protect the equipment and other valuable property within the building. So long as you use a building as part of your business, commercial property insurance is a must (and if you lease, it is likely required by the landlord). 

• Commercial Auto 

As the name implies, commercial auto insurance helps protect vehicles that are used for business purposes. If you simply use your own car to commute to your business, then a personal auto insurance policy is sufficient. But if employees drive company cars, or you use your own car to do things like make deliveries, transport business equipment, or chauffeur anyone around, you need commercial auto insurance. 

• General Liability 

In short, general liability insurance protects your business in the event that you are sued. This includes lawsuits from visitors who get injured and think you are to blame as well as lawsuits regarding property damage, advertising injuries, medical payments, and more. Considering that you might lose your business even if you win a suit due to legal costs, this insurance helps protect your business. 

• Workers Compensation 

If you have employees, you need to be able to compensate them if they get sick or injured on the job. Workers’ compensation helps you to abide by legal requirements concerning your employees and can help provide those same employees genuine peace of mind. 

• Commercial Umbrella Policy 

General liability insurance helps to pay for things like legal costs in the event of a lawsuit, but there are limits to how much the policy will cover. If you are really worried about getting sued, you can supplement liability insurance with a commercial umbrella policy that provides greater legal fee coverage along with enhanced protection against bodily injury and property damage claims. 

• Business Owner Policy 

As we noted before, most business owners need more than one of these insurance plans. If you plan on getting both property insurance and liability insurance, you can save time and money by having both policies bundled into a convenient business owner policy. 

• Commercial Package Policy 

Want to combine more than just liability and property insurance? With a commercial package policy, you can get a tailor-made bundle of insurance policies perfectly suited to your business. This lets you get all the coverage you need without paying for anything you don’t really need. 

The Benefits of Commercial Insurance  

Commercial insurance helps businesses to protect themselves as well as their employees. Ultimately, this coverage is one of the best ways to protect your business from the unexpected. 

Still on the fence about whether or not you need commercial insurance? Keep reading to discover the best benefits of this insurance! 

• Important Protection for Employees 

It’s more than a saying: Your employees really are the backbone of your business, and the right coverage helps you give those workers the protection they deserve. 

For example, workers’ compensation helps employees know they’ll be taken care of if they get sick or injured. Knowing that the property and company vehicles are covered means employees don’t have to worry about unexpected disasters affecting their employment. 

• Protection from Expensive Lawsuits 

Here’s the thing about liability insurance: Nobody ever expects to get sued, but it happens more often than you think, and it’s often more expensive than you imagined. For example, the average cost of a simple slip and fall claim is $20,000! 

That’s enough money to put many new companies out of business. With liability protection, you and your business are covered. 

• Save Your Business from the Unexpected 

At the end of the day, you need commercial insurance for the same reason you need personal insurance, which is to help protect you against the unexpected. 

You have no way of controlling when unexpected catastrophes like fires affect your business. With the right insurance policy, you’ll have the protection you need against almost anything life throws at your business. 

How Much Does Commercial Insurance Cost? 

The costs of commercial insurance vary based on what kind you buy and how much you buy. But we can look at some average costs so you’ll have a ballpark. 

Some of the factors that will affect how much you pay include size of company and number of employees, industry, location, payroll (worker’s comp), coverage and deductibles and, of course, your history of claims. 

How to Save on Your Commercial Insurance Costs 

As with all types of insurance, your insurer is likely to reward you with discounts when you make their life easier and prove you are a loyal customer. Some ways to save include: 

• Bundling – Having more than one policy with the same insurer will get you a steep discount. 
• Prepay or auto-pay – When you cut down on their administrative costs by prepaying your policy or having it set for an automatic bank deduction, they’ll reward you. 
• Instigate work safety programs – May insurers will give you a break if you can demonstrate that you are taking the necessary steps to cut down on potential claims. 

Get the Best Commercial Insurance Today! 

Now you know more about commercial insurance and its benefits. But do you know where to get the best coverage at the most affordable price? 

Here at InsureOne, we’re here to protect you and your business. We are always ready for you to get a quote online. Alternatively, you can pick up the phone and give us a quick call at 800-836-2240. Finally, feel free to come into one of our convenient nearby offices at visit with an agent!