Insurance won’t guarantee your company’s success but it will certainly come in handy if some sort of mishap, theft or other unforeseen circumstance arises. That being said, it’s imperative to know how much insurance is enough. It’s equally as vital to know the kinds of losses your insurance will cover and what events, if any, won’t be covered under your policy. According to Mike Flanagan, owner and principal agent of Flanagan and Associates Insurance Agency in Powell, Ohio, two emerging trends in commercial insurance are the growing popularity of cyber-security policies and professional liability insurance.
Factors to consider
There are several important matters to consider prior to purchasing business insurance for your company, says Flanagan. They include:
- -The financial strength of the insurance company you’re considering based on AM. Best (a company that rates the financial strength of every insurance company)
- -The amount of coverage your business needs; and
- -The cost of insurance premiums.
Business owners should know that “commercial insurance rates increase an average of five to ten percent per year,” says Flanagan. Another factor impacting the cost of insurance premiums is how frequently you or your company files insurance claims. The more claims made by an entity, the more expensive insurance for that company will be.
Types of insurance to consider
Since insurance specifically covers a certain act or occurrence, it specifically excludes anything other than the highlighted occurrence. What that means is, if, for example, you purchase flood insurance for your business, a lightning strike that damages your building’s roof might not be a covered loss.
Certainly the type of business you own will impact the types of insurance you might consider for your entity. Among them include insurance that covers:
- -The inventory of a business;
- -Losses resulting from natural and man-made causes;
- -The contents of your structure;
- -Liability to protect you should you or your business be sued; and
- -Worker’s compensation.
Flanagan, who’s been in business for 23 years, says commercial pursuits, ranging from restaurants, contractors, Internet providers and heating and cooling vendors comprise one-fifth of his clientele.
Tami Kamin Meyer is an Ohio attorney and writer who may be reached at This email address is being protected from spambots. You need JavaScript enabled to view it..
