Does Your Business Insurance Cover These 4 Things?

They say that one of the things that separates the entrepreneur from the employee is risk appetite. 

It’s well known that starting any business is risky, especially in today’s economy. But will having an increased tolerance from risk make you a better business owner? 

In my opinion, the better move would be to carefully manage risk.

One of the key tools to lowering risk in your business is to get some sort of protection. That’s right people – it’s that boring but o so important concept of business insurance.

Insurance is vital to protecting against the unexpected, and you need to understand the different risks associated with running your particular business. Different insurance policies exist to cover things like equipment, inventory, business assets, and property. Even if you think you have the best possible insurance for your business, you might be surprised to find it doesn’t cover all the possible risks! Does your business insurance cover these 4 things?

1. Working from Home

There’s an increased trend in relocating business offices to one’s home. It’s not just do to the comfort of being in your PJ’s and having flexible hours, it’s all the costs saved by cutting down on travel and utility costs. However, there are other cost you should be concerned with.

If you operate your business out of your home, it’s easy to assume your homeowners policy will cover all the associated risks. Most likely, this is not the case. Go through your particular homeowners policy to determine if there is a business clause that denies coverage for business expenses such as equipment and inventory.

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2. Replacement Value Coverage

In most cases, your business insurance will only cover the value of what you originally paid for the equipment or inventory. In the case of theft or damaged property, expenses can often be greater than the value you originally paid.

If you have a particularly expensive inventory or equipment, it might be worth that you go with the increased premium to include coverage for the full replacement value. This type of coverage will give you a peace of mind, meaning you are insured up to a certain limit for the cost of replacing any damaged or stolen inventory or equipment.

3. Auto Coverage

Even if you don’t use your vehicle for business purposes, an auto accident can be detrimental to your health and subsequently the economic wellbeing of your business. Ensure you have an adequate amount of coverage on your personal car to cover all potential liability and property costs.

If you have employees and a vehicle that is driven by them, you will need to have additional coverage. This is known as “non-owned” coverage which means the coverage will extend to the employees who operate the vehicles.

4. Flood Coverage

You might surprised to learn that flooding is often not covered under most business policies. This can be devastating in the instance of a natural disaster such as a hurricane or tropical storm. Recently, Hurricane Harvey caused record-breaking flooding in parts of Texas, leaving homeowners and business owners struggling to pay for damages they found out were not covered.

There are many hurricane claim options for those affected by Harvey and for those looking to protect their property from such occurrences in the future. Flood insurance covers any damages and losses resulting from water that has overflowed local river and streams as well as standing water after prolonged rain. It is up to you to determine whether your business is in a high-risk flood area and purchase flood insurance for your property. Or any other element for that matter.

Protect Your Business with the Right Coverage

It’s essential that you protect your business with the right coverage! It doesn’t matter how big or small your business is; there are always risks associated with operating a business even if it’s out of your own home. Find the right business insurance you need today to avoid major loss in the future!