What business insurance is right for a retail business?
Any business; retail, specialty, service, restaurant, financial planner, mechanic, doctor, lawyer, or any small business needs to insure the business against risk. The question we often get asked, how much is enough? The right question should be, “What coverage(s) do we need?”
First, if nothing else, you need to have liability coverage in place for your financial security. Many standard liability policies for small business are 1 Million dollars for any one loss and two million dollars in any one year. For most of us, that sounds like a lot of money, but is it really when looking at protecting your business. Consider the ramifications of you or an employee of your company seriously injuring a third party in an accident where fault is determined to be you or your employees’. The case goes to litigation and jury determines the losses to the third party exceed 4 million dollars based on medical costs, lost income, and pain and suffering. That 1 million dollar limit doesn’t look so big anymore. It is often important to ask your commercial insurance broker what is realistic for your industry and area. A commercial umbrella policy is often a cost effective way to increase your liability coverage without breaking the bank.
The second area of coverage needed is property insurance. Property coverage is another area where a discussion with your licensed insurance professional is necessary. It is always recommended to carry the highest coverage affordable. Review the coverage with your insurance agent while considering starting from scratch in the event of a catastrophic loss. It is always wise to have a separate discussion regarding the commercial vehicle insurance your business is carrying.
Finally, does your business need worker’s compensation insurance? Hiring one employee should at least have you as an owner having that discussion. As noted before, take the time to really determine with your commercial insurance broker the proper coverage(s) needed to reduce your risk exposure.