As a business owner, it's important that you protect your investment. However, many business owners fail to recognize when they need more insurance protection than they have. Property coverage is important for protecting your location and your inventory, but that's only the beginning. Here's a look at a few key indications that you also need a commercial liability policy.
You Operate From A Commercial Location
If you operate your business from a commercial location, you probably already have property insurance to protect the business space and inventory. What you may not have, though, is protection against any possible liability claims. Operating a business puts you at risk of liability claims in terms of injuries that may occur on your property and even inadvertent injuries caused by your products.
In the event that something happens, your company could be financially liable if you don't have liability insurance. With a commercial liability policy, you'll have insurance to cover those financial losses. You can purchase policies with a variety of liability limits, so talk with your commercial insurance agent about the options to get the coverage that you need.
You Hired Employees
As soon as you hire any employees, you transition from a sole proprietor to an employer. Becoming an employer brings about some more significant insurance ramifications. For instance, when you hire employees, you increase your risk of liability issues. When you aren't always the one dealing with your customers, you take some risk of problems arising that you'll need insurance protection for.
Additionally, as an employer, you take on risks associated with potential discrimination suits, employer law violations, and more. Employer liability insurance is an important investment to protect against these types of problems.
You'll also need to consider worker's compensation insurance as an employer. When you have people working for you, you're responsible and legally liable if they suffer an injury on the job. Worker's compensation insurance can protect your company's cash flow in the event of such a situation.
Your Business Involves Travel Or Delivery
If your business requires you to travel for your job, including making deliveries or even just driving between client sites, you need to carry a commercial auto policy. Your personal insurance policy won't cover your car or any other driver in the event of an accident while you're conducting business.
Commercial auto policies are designed for this purpose. You'll have to talk with your insurance agent about the type of insurance coverage you need for your car based on how you use the vehicle. It's important that your financial interests are protected.
For more information about the coverage you need to protect your business, talk with a local insurance agent in your area like those at Scovotti Insurance .