To protect your business against risks, you must consider commercial insurance. But to protect your business optimally with insurance, you must ensure you have purchased an adequate amount. But how much commercial insurance is enough? It’s never a straightforward answer because no business is similar to another. However, ALLConnecticut Insurance is here to guide you on the amount of business insurance you need.
Meet the regulatory requirements
Does your state have minimum business insurance requirements? This should be an excellent place to start. For instance, Connecticut requires all businesses to invest in worker’s comp insurance. Ensure you comply with this, but this is just a starting point — ensure you stick out your neck for other business insurance coverage options.
Furthermore, consider your lender’s requirements concerning business insurance if you have a business loan or mortgage. Again, your lender’s requirements only protect a portion of your business. It would help if you considered other business policies for all-rounded protection.
How much property insurance do I need?
If you maintain an asset register, you probably have an idea of the value of your assets. Ideally, the amount of commercial insurance you purchase should be enough to cover all your assets in the worst-case scenario.
Suppose a fire consumes your business premises and all its contents. Can your business insurance cover all the losses? If not, please talk to your insurance agent to help you buy an adequate amount.
How much liability insurance do I need?
This is usually difficult because you can’t predict the severity of liability claims you will face. However, as a thumb of rule, always purchase liability insurance equivalent to or more than your business assets’ value. Also, you assess how risky your business is. If you are at a high risk of lawsuits, you must consider umbrella insurance or excess liability coverage for optimal protection.
Need to learn more about commercial insurance in West Hartford, CT? Don’t hesitate to contact ALLConnecticut Insurance for all your business insurance solutions.