Knowing how much insurance you will need as a small business owner can be a challenging endeavor. Nevertheless, having the appropriate insurance policy can save a small business a lot of money.
Evaluating Your BusinessThe first consideration when using needs analysis for deciding on an insurance policy for your small business consists of accurately analyzing the different liabilities and assets which directly affect the business. These include:
You can then better determine your company's insurance objectives and what type of insurance plan would be optimal for your business by keeping the above factors in mind.
Getting the Right Amount of InsuranceOnce you have evaluated your assets and liabilities, you will be much better prepared to determine how much insurance your company will need. You will want adequate coverage for your assets so make an accurate assessment of potential risks to your property to get adequate coverage.
By law, your business will need Workers' Compensation insurance. Consult with your company's lawyer or advisor on how much your company may need and what type of package would be optimal for you and your employees.