Business Law > Insurance Basics > Basics | Liability | Property, Auto, Worker's Comp

Insurance Basics

The success of any business depends on hard work and ingenuity. However, no matter how industrious you are, one disaster can wipe out all your hard work, profits and even destroy your business. One key to making sure your business continues, even in the face of disaster, is to purchase appropriate insurance.

Find the right agent

The first step is to find the right agent. Here are a few tips to consider:

• Ask friends and acquaintances in the same kind of business who they use.
• Ask the agent or company that provides your personal insurance if they can help cover your business.
• Contact business trade associations or your local Chamber of Commerce (www.hagerstown.org) to see if they sponsor any insurance programs designed specifically for your business or if they can provide a list of local insurance agents.

Saving money

How can I save money on my business insurance?

• Prices vary from company to company, so it pays to contact more than one agent so that you can compare prices and get a feel for the types of services they provide.
• It’s important to pick a company that is financially stable. Check the financial health of insurers with rating companies such as A.M. Best (www.ambest.com).
• Consider purchasing a package policy. It may be less expensive than individual coverages.
• Work closely with your agent. Keep your agent informed about major changes in your business, including major purchases, expansions, changes in hiring or the nature of your operation. Also, get your agent’s advice in terms of disaster planning. Ask what you can do to both reduce risks like fire or work-related accidents, as well as the procedures that should be in place in case your business does suffer a loss.
• Ask about ways to prevent losses. You may be able to reduce your premium for certain coverages by following your insurance company’s recommendations. This can include workplace safety, disaster preparation, and human resource intervention.

Insurance Types - Liability

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