Many small business owners skip liability coverage to trim operating costs, but such tactics can be a serious mistake. Every day, businesses face frivolous lawsuits, and defending a claim with no insurance can spell financial ruin for a small business owner. Aside from forming and implementing a risk management and quality control program, business owners can take several steps to minimize the cost of insurance in Wichita KS.
The cost of business liability insurance varies widely by company, and coverage levels can vary as well. To get an accurate comparison, business owners should review options and evaluate rates from several insurance carriers. Comparing prices may take time, but the savings make it worthwhile.
Consider Buying a BOP
A business owner’s policy (BOP) combines several types of coverage into a single package. When getting a quote on a business owner’s policy, the customer should understand what’s included and what is not. BOPs do not always include all coverage types. For instance, errors and omissions coverage is also known as professional liability insurance, and it protects companies from claims of negligence, unlike a BOP.
Hire a Specialized Broker
If the business owner operates in a specific niche, they may require specialized coverage to protect against unique risk factors. Insurance brokers such as Andy Woodward Insurance know which coverage types businesses need, and where the best rates can be found.
Learn About Industry Settlements
To gain an understanding of which coverage may be needed, the owner should look at settlements and legal actions by businesses in the same industry, and they should talk to colleagues about their coverage levels. Using such information, owners of small businesses can determine the average settlement and legal cost to decide how much coverage the company needs.
While the expense of protecting the business and the owner with liability coverage may be high, research can help the customer find the best coverage for a fair price. Liability insurance will protect the company and the owner from costly litigation, and it can provide a foundation for a successful company. Having enough insurance in Wichita KS can be a critical step in ensuring the survival of the business.