At Franklin Insurance Agency, we usually get this from our clients after a disaster strikes, “I thought I was covered.” Unfortunately, about 75% to 90% of business owners are underinsured. And this means one thing — you will have to incur unexpected out-of-pocket expenses when disasters knock on your doors.
So, how much commercial insurance do you need for your Rio Rancho, NM business? Well, keep reading to know the amount of commercial insurance you should purchase.
Business insurance coverages
Before determining the amount of business insurance you require, it’s essential to look at the different types of coverages available for businesses. Here are common business insurance coverages:
- Business liability coverage: This covers your business against liabilities, including property damage, advertising, and bodily injury.
- Commercial property insurance: It protects your business premises and other assets against risks like fire, vandalism, and theft.
- Worker’s comp insurance: This coverage protects your employees against illnesses and work-related injuries.
- Commercial auto insurance: It’s required for business vehicles.
- Cyber liability insurance: It protects your business against cybercrimes.
Having known the different types of commercial insurance coverages, you can now ask how much business insurance you require to purchase.
How much business insurance do you need?
The amount of commercial insurance apt for your business isn’t a cut-and-dry answer. It depends on various aspects of your business. Here are questions you must ask before determining the amount of commercial insurance you need:
- What’s the nature and size of your business?
- How many employees do you have?
- Where is the location of your business?
- What’s the size of your business contracts?
- What are the mandatory commercial insurance coverages?
- How many insurance coverages do you intend to purchase?
An insurance agent familiar with your industry can help you determine the amount of commercial insurance sufficient for your business.
Are you still unsure about the amount of commercial insurance you should purchase? Don’t stress yourself. Instead, contact Franklin Insurance Agency for clarification. You can also pass by our Rio Rancho, NM to talk to one of our agents.