Commercial insurance is a necessary purchase for many businesses. It is important to know when you need to buy commercial insurance and how much coverage your business needs as a business owner. Here are some everyday situations where it’s best to purchase commercial insurance.
1. You Have Employees
As a business owner, you typically need to purchase workers’ compensation insurance for your employees. Worker’s compensation helps pay medical expenses and lost wages if an employee is injured in their job. Even if you have only one part-time employee, you should still consider purchasing this type of coverage.
2. You Use Equipment or Tools at Your Place of Business
Any equipment or tools you use at your business’ location need to be covered by commercial insurance. For instance, if you own a car and use it for work purposes, you will typically need to include this vehicle under your business’ auto insurance policy. In addition, if any of the equipment or tools at your place of business are stolen or damaged, you’ll be covered under your business’ property insurance policy.
3. Your Business Owns a Storefront
Not only do you need to purchase insurance for your equipment and tools, but if your business has a physical location, you should invest in commercial property insurance. Commercial property insurance will help cover any damage caused by an accident on your premises. This type of policy will also protect the contents of your building in case of damage or theft.
4. Your Business Is Engaged in a High-Risk Industry
If your business operates in a high-risk industry, such as construction, you will need to purchase additional commercial insurance coverage. Industries that utilize hazardous materials and equipment need extra liability coverage. It would be best to speak with your insurance agent about the specific types of risks associated with your business and how much extra protection you may need for this area.
As a business owner, you need to know when to buy commercial insurance. Several factors will determine how much coverage your business needs and which types of policies you need to purchase. Jason Ridley Agency can provide expert advice on what kind of coverage your business needs in Colleyville, TX. Call us today to learn more.