When it comes to business insurance, one size does not fit all. Every business has unique risks, and understanding how much coverage you need can mean the difference between staying protected and facing financial devastation. Let’s dive into the key factors that determine how much coverage is right for you.
Factors That Determine Your Coverage Needs:
- Size of Your Business: Larger businesses typically need more coverage due to their higher exposure to risks.
- Industry: A construction company will need more coverage than a small retail shop because of the higher chance of accidents.
- Assets: The more physical and financial assets your business owns (e.g., equipment, buildings, inventory), the more coverage you’ll need.
- Revenue: Higher revenue could mean higher liability if someone sues your business, requiring more protection.
Claim Scenario:
Picture this: You own a growing e-commerce company, and you’ve stocked a warehouse full of products. One night, a fire breaks out, damaging half your inventory. If you only have basic property coverage with a low limit, you’ll be forced to cover the replacement costs out of pocket.
But with the proper commercial property insurance and business interruption insurance, you’d not only have the funds to replace your damaged stock, but your lost income during the downtime would also be covered. This allows you to rebuild your operations smoothly without a financial hit.
Pro Tip: Don’t Underestimate
Many business owners underinsure, thinking it’s a way to save on premiums. However, in the event of a disaster or lawsuit, having inadequate coverage could put your business at risk of closing. It’s critical to assess your business thoroughly and choose a policy with adequate limits that can handle the worst-case scenario.
Evergreen Insurance is Here to Help
Our team at Evergreen Insurance specializes in helping businesses like yours find the right coverage. We take the time to understand your operations, so you’re protected no matter what. Contact us today at 360-254-7166 and let’s work together to ensure you’re never underinsured!