Planning to Insure Your Business

Your business is unique. Your business needs a business insurance plan that fits your business. Here we look at the preparations and considerations necessary to properly insure your business.


1. Preparation

Preparing to purchase business insurance is a process that requires the business owner to analyze their business and to weigh the risks faced by the business. Preparing beforehand allows the business owner to communicate their needs to the insurance professional and insurer.

Meeting with your agent or broker is critical in proper business insurance planning. Use the checklist below to make sure you have all the information you will need to fill out the various applications, have a meaningful discussion with your insurance professional, and to insure that you purchase the right business insurance for your company.

Information for Every Location Where You Do Business

You will need all of the information for every location where you do business this includes:

• Addresses of all locations
• Copies of relevant leases
• Names and addresses of all landlords
• Names and addresses of any location where your employees operate as contractors
• How each location is constructed (masonry, metal, or wood)
• Whether the location has sprinklers
• Square footage and the type of space
• The number of floors in the structure.
• Information for Every Titled Vehicle Owned By The Business
• You will need:
• Vehicle Identification Number (VIN)
• Model year
• Color and make
• for every titled vehicle owned by your business. Note: this is not limited to automobiles! All titled vehicles include: trailers, watercraft, road equipment, motorcycles, anything that is titled.
• Employee, Owners, and Officer's Information
• You will need all employee, owners, and officer's information and their beneficiary information. This includes:
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• Names
• Names of spouses and children
• Addresses
• Birth dates
• Social security numbers
• Note: You may need additional information to secure health insurance.
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• Credit, Banking, and Account Information
• Some insurers may offer premium insurance programs to financially secure operations that sign up for longer than usual policy periods. You will also need this information for certain coverages and to set up direct premium withdrawal if desired.
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• Financial Records Showing Assets and Liabilities
• Insurance rates are typically based upon financial data. It is imperative that you purchase the correct amount of insurance. If you "under insure," then you will be subject to a large "co-insurance penalty." You will need your most recent records in order for you and your insurance professional to determine the appropriate amount of insurance. Also, in order to purchase business interruption insurance you will need this information.
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• Names and Addresses of Additional Insureds
• There may be certain businesses or people that you will want to cover under your policy as additional insureds. For example, if you are a landscaper with a contract with a recurring client, then you may want to add their locations as additional insured locations.
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• Copies of All Current Policies and Declarations Pages
• If you are changing carriers or looking to change coverage, you will need copies of your current policies so your insurance professional can have the policies terminated and your new coverage start without a lapse or an overage of coverage.
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• With this information your insurance professional can also give you a comparison of available products to what you currently carry.
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• Identify Critical or Unusual Equipment
• You may need specialized coverage for equipment that poses an exceptional risk or is so critical to your business that its loss can lead to a lengthy business interruption. So bring these things to the attention of your insurance professional.

Purchasing the Right Business Insurance Policies

Understanding what different policy types cover is important to match your business insurance needs to what policy coverage. Knowing what coverage is mandatory and what business insurance is optional allows the business owner to control the business insurance budget.