What Black Women Should Know About Business Insurance

If you are an entrepreneur, then you may be confused about the types of business insurance that you need.

While insurance companies offer various kinds of commercial insurance, there are some types that you need to have in place.

Covering the Building

One of the primary types of insurance that you need to have in place is property insurance. It covers your building, the area around your building, and any fences or signs that you have in place.

According to HowMuch.net, the price that you pay for commercial property insurance depends on several different factors, including its location, building materials, and what type of business you operate.

You can find business property insurance that also covers the contents of your building.

Covering Employees

Employment practices liability insurance is designed to protect your company if one of your employees does something wrong. It also pays for your legal defense if an employee sues you or another top executive in court.

If you are thinking of changing carriers, then make sure that you negotiate with your former company to cover any future claims that arise when their policy was in effect. 

When buying new coverage, arrange for the earliest retro date that you can get to make sure that you stay protected at all times. Look for a policy that will let you choose your own lawyers as some require you to choose from a pre-approved list.

Find plans that cover interrelated wrongful acts so that you only have to pay one deductible. Make sure that the only exclusion is for deliberate acts of wrongdoing. LoPriore Insurance points out that some insurance options also serve to protect businesses from financial or other property loss due to dishonest employees.

You may also want to consider insurance offering health care as one of your employee benefits.

Covering Everything Else

You need a commercial umbrella policy to make sure that you are covered in almost all circumstances. This coverage picks up when the limits of your other liability policies have been reached.

For example, if a customer slips and falls in your business, and you are at fault, then you turn the claim over to your general liability insurance company. They pay out $1 million, but the court awards $1.5 million in damages. Then, your commercial umbrella policy pays the rest.

Depending on your business, you may need commercial auto insurance, liquor insurance, employee liability insurance, and fire liability insurance to get a commercial umbrella policy.

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A successful business is not only covered by insurance, but covered by the right kinds of insurance. If you’re unsure about your needs, it’s a good idea to talk to a commercial insurance agents as well as a business mentor. 

For more great ideas, read this next: 4 Cost-Saving Ideas for the Black Woman Business Owner