Starting a business is exciting - mostly. A few tasks, like selecting business insurance, are less interesting but still necessary. The keys are in knowing what kinds of coverage you need and when you need them.

Ideally, you'll obtain this insurance as soon as you start your business. The reasons are two-fold: some policies, like workers' compensation insurance, are required by law, while policies like professional liability help cover legal expenses if your business makes an error in the services it provides.

You can choose a specific time of year to buy insurance so it coincides with important operational factors. Your cash flow, for instance, will likely play into the insurance you can immediately afford and the premium payment options that make the most sense for you. Additional factors you'll want to consider include:

  • The month you want your policy to renew each year
  • The due date of your business taxes (to avoid taxes and renewal payments due at the same time)
  • When you plan to buy new equipment and/or offer new products (both impact your coverage needs)

A Business Owners Policy

Just a moment ago, we mentioned two policies common for business owners. These, however, are a small snapshot of the many different policies you may need. Some agents offer what's called a Business Owners Policy (BOP) that combines multiple policies into one, therefore simplifying the insurance selection process. A BOP is ideal if you:

  • Have a physical location, whether it's your home or an office
  • May get sued, such as by a customer injured while in your workplace
  • Have assets that could be stolen or damaged by fire, theft, or other disasters

Modify Your BOP

A BOP can also be customized to fit your specific needs. Adding commercial auto insurance, for instance, protects your business if an employee gets into an accident while driving a company-owned vehicle. The ability to buy those policies you need, and omit the ones you don't, gives you valuable protection while also saving you money.

Even Small Businesses Need Insurance

Not all small business owners truly understand the value behind appropriate insurance coverage. This gap is owed in part to misplaced anxiety about how much insurance policies cost. But more emphasis needs to be on the out-of-pocket costs that become your burden when you lack the proper coverage.

An ordinary customer slip-and-fall injury, for instance, costs around $20,000 to settle. This can take a real toll on a small business, but a BOP covers this without adding to your expense. Likewise, if you have assets that are stolen, you may not have the money necessary to recover them and continue operating in the interim. In short, having the right coverage can save your investments - time and money - and keep your business running.

Choosing the policies appropriate for your business isn't something you need to do alone. We can help with every aspect, from choosing your policy limits to obtaining the most competitive rates. Get your quote today by calling Society Insurance Network, serving the states of Wyoming, Colorado, Utah, and Idaho.

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