2. Cut unnecessary coverage
At a bare minimum, it’s a good idea for most small businesses to carry general liability insurance. This blanket insurance policy protects you if any injuries or accidents happen in the course of business. It also protects you if a customer or client claims you were negligent.
For other insurance policies , though, ask yourself if you really need the coverage. Other options — like property insurance, professional liability insurance, umbrella insurance and product liability insurance — may not be necessary for your business. Review each individual policy’s coverage terms carefully and check for overlap or duplication of benefits with your existing insurance policies. If there’s overlap, you’re probably paying more than you need to for no real benefit.
If you operate a physical location, it’s a good idea to have some property insurance. This is also true if you run a business out of your home and have physical products on hand.
Theft or disaster can cost you in business property damage, which can set you back months, interrupt your business operations, or even cause you to close up shop. This doesn’t mean you can’t lower your coverage limit, but having some property insurance when you have products or a retail location is a great idea.
You know your specific business needs better than anyone, so think about which type of insurance really fits your business. When in doubt, ask an insurance agency or business advisor for assistance.