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Commercial Insurance Tips for New Business Owners

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commercial insuranceThere is no doubt that every business must have an insurance cover. But for a first-timer it is quite difficult to navigate through various insurance plans and providers. Discussing with fellow business owners can be a way out; but a commercial insurance agent is the correct person you should contact as they are familiar with a range of business requirements and can offer you the true insight about what is best for your business. For example, at Segreve & Hall Insurance Associates you can get the most accurate information and understanding about how to choose just the right insurance policy.

Business Owner’s Policy to Start With

For a coverage that is affordable as well as broad-spectrum, a business owner’s policy or BOP is always best to start with. It combines both general liability and property insurance, and usually covers events causing property damage, suspended operations or lawsuits. Based on the type of your business and the number of employees, you may require particular types of extra insurance; but a BOP will protect you from the common losses that occur in a business. It is important that the business owner discusses with an insurance agent regarding what a BOP covers or does not cover, and decide whether the needs of the business demand extra coverage.

Cheaper Need not Always be Better

It is understandable that when you are in the starting phase of your business, keeping your budget low is your top priority. So, it is advisable to go for low cost options for certain aspects. But for business insurance this is not always smart, as it is not necessary that low costing insurance policy is always good. Shop around for one that suits your budget but look for a comprehensive coverage along with business support products on priority.

Be Ready for an Audit

Normally, the premium of an insurance policy is structured on the basis of the yearly gross sales of a business. If your business is new and has no sales history, you will have to pay a premium that is based on an estimated yearly sale for the first year. Therefore, your business will undergo an audit either in the course of policy or at its end and the premiums will be structured according to your actual sales. So, be as accurate as you can, regarding your sales records of your business to avoid unpleasant surprises.

Consider All Future Possibilities

We normally don’t like to think about a mishap. But in case of your business, you should necessarily consider what an illness, accident or disability can mean to your business. You should consider the consequences of revenue loss and the succession of business you’ve achieved with such a hard work. Pro insurance advisers advise to look into disability and life insurance policies to make sure the stability of your business in the event of something undesired were to happen to you or a major player in your company.

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