When business owners think about commercial insurance, it can be a bit confusing because the term “commercial insurance” represents a category of insurance coverage, not just a single type of insurance policy. For the owner’s protection, a business may need many types of commercial insurance.

The category of commercial insurance includes such things as workers’ compensation insurance, property insurance, key person insurance, professional liability insurance, product liability insurance, commercial vehicle insurance, business interruption insurance, and umbrella insurance that extends other policy limits and covers special-case needs. A good way to deal with the issues and choices for commercial insurance is to work closely with your agent at M8 Insurance serving Salt Lake City, UT and the surrounding area.

Here are some considerations that help business owners to make sure their commercial insurance coverage is adequate:

• Understanding Coverage: The first step is to talk with your insurance agent to have a comprehensive review of what is covered by existing insurance or proposed insurance that is under consideration.
• Plan for Worst-Case Scenarios: Make a list of the worst-case scenarios. For example, if a business depends very heavily on the participation of a certain person or persons for smooth operations, having key person insurance on these individuals can help a business survive if that person(s) is no longer able to work for the business.
• Use Correct Valuations: It is best to use current replacement values as the amount insured for property, equipment, inventory, and so forth. As an example, if the business relies on equipment that was purchased some time ago, it may be surprising for the owner to learn what new equipment of the same kind costs at current prices. For the business to survive a catastrophic equipment loss, the replacement cost needs to be covered, not what the old equipment is worth.
• Cover Unique Risks: Some businesses have unique risks that require individual coverage. Online retail operations need cybersecurity insurance for damages caused by data breaches, whereas other types of business may not need this coverage as much.

To discuss commercial insurance coverage and to be sure it is adequate, make an appointment for an insurance review with your agent at M8 Insurance in Salt Lake City, UT.