Opening and running a business exposes you to certain risks. If you don’t take steps to protect your assets, a single lawsuit or a catastrophic event—an earthquake, flood, or fire—could bring down everything you’ve worked hard for in one swoop. That’s why having adequate commercial insurance coverage counts. But how do you know if you have enough?

Explore Basic Insurance Types

The three most common types of commercial insurance include property insurance, liability insurance, and workers’ compensation insurance. If you’re shopping around for commercial insurance in Phoenix, this is where you should start. All three cover the most basic needs.

  1. The first one provides you with coverage for damages to your business property.
  2. The second one provides coverage for damages to third parties.
  3. The third one offers coverage for your employees in case they get injured on the job.

Choose the Right Policy

Under these types of insurance, you may encounter features or financial products unique to certain carriers. Review each of the insurance policies to find out which one gives your business adequate coverage. Study the terms and conditions as well as restrictions. The last thing you want is to lock yourself to a policy that doesn’t provide you with enough coverage.

Calculate Your Coverage

It’s going to be impossible to prepare for every accident, every bump in the road. That can make it a challenge for a lot of business owners to decide just how much their coverage should be. Do the math by asking yourself:

  • What kind of business do you have? High-risk businesses are harder to insure.
  • How big is the business? Bigger business means bigger coverage.
  • Who are your customers? If you provide goods or services to high-end markets, then you’ll need to go for more than the basic coverage.
  • How many employees do you have? If you’re in the construction industry, you’ll need to get workers’ compensation coverage even if you only have a single employee. Check in with your state to avoid getting into trouble for that.

All these questions highlight one thing: the coverage you need should be equal to the risk you take on. That also means that as your business grows, so will your insurance needs evolve. That’s also another reason to shop around for new policies that offer you better coverage.

Boost your basic policy. Protect your business from liability with more coverage. Learn more about commercial insurance in Phoenix when you contact Capital Insurance.