How to Assess Your Business’s Insurance Needs

The right insurance plan is essential to your company’s success. The coverage will protect your hard work and investment put into your business in the case of an unexpected occurrence, and keep the business running smoothly in spite of those unforeseen circumstances.

Businesses can attract lawsuits, even if they haven’t done anything wrong. Even an allegation alone will most likely trigger a costly defense. But what are your business’s liabilities? How do you know which coverages are essential?

Assessing the Risks

First, talk to an agent. Your local Santa Fe insurance agency can evaluate your potential needs and risk to come up with a plan to fit your specific needs. An agent will work with you to perform a risk management assessment, providing a list of potential events that could lead to a loss, determine  estimated costs of each, and how best to address each risk. Agents should gain a thorough understanding of the business to identify potential risks. This may include an evaluation of possible property losses, business interruption losses, liability losses, key person losses, automobile losses and injury to employees.

Providing details of your business can assist your agent in suggesting the best coverages and the level of risk that you may encounter. Don’t leave anything out; your insurance agency can only provide you with the best coverage if they know precisely what needs covering.

Insurance Types and the Law

Although many types of business insurance are optional, there are a few instances in which a business is obligated to have a policy.

  • Santa Fe, New Mexico requires that those who have three or more employees carry workers’ compensation insurance. For licensed construction trades, those who employ at least one individual must carry workers compensation. Those with no employees are not required to carry workers compensation.
  • Santa Fe business owners are required to have any drivers carry minimum automobile insurance. If you use your car or truck for business, it is recommended that you purchase a commercial vehicle policy.

Those two policies are required, but they’re far from the only beneficial ones for your business.

  • Commercial general liability covers claims and lawsuits by others who were injured or whose property was damaged by the policyholder.
  • Some policies may cover loss or damage to the business’s own property. For a business providing professional services, professional liability insurance covers accusations from clients.
  • Property losses are covered by property insurance; however, this typically doesn’t provide money for indirect losses, such as lost income from a business that is temporary down for repairs. Business interruption insurance covers loss of income when day-to-day operations are affected and revenue is lost due to a closure.

As a business grows, it may be beneficial to inquire about coverages such as cyber insurance, umbrella, crime and fidelity protection. Performing a risk analysis will also help your business to gain a clearer picture of its main liabilities.

Contact a Santa Fe insurance agency for advice and to understand what is covered so that a cost-benefit assessment can be made.

About Daniels Insurance, Inc.

At Daniels Insurance, Inc., we have a unique understanding of the risks that businesses like yours face on a regular basis. With the backing of our comprehensive coverages and our dedication to customer service and quick claims resolution, your business will be fully protected. For more information, contact us today at (855) 565-7616.

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