Careful planning is important when you’re budgeting to manage the liabilities your company faces. A lawsuit or an accident that damages your company’s assets can put you out of business. At the same time, insurance premiums for a "full coverage" commercial insurance policy could be expensive or even unaffordable for you.
In looking for the right commercial insurance policy for your company, you should consider the following three calculations. Crunching the numbers and analyzing your company’s assets and liabilities is the best way to ensure the continued financial stability of your company.
- How much you can budget for monthly payments- In most cases, greater insurance coverage requires higher monthly premiums. When it comes to commercial insurance coverage, you should always be looking to stay on the safe side. At the same time, you don’t want to waste money for coverage you don’t need. When you purchase commercial insurance, you should project your budget out into the near future and consider how monthly premium payments will affect you financially. Figure out how much you can pay each month without creating a burden for your company that will cut in to your bottom line.
- How much your company is worth- The more you company is worth, the more it will appear as a target for lawsuits. Evaluating your company overall is a good way to understand what you stand to lose in the event of a legal or financial catastrophe.
- How high your coverage limits need to be- The difference between what your coverage limits are and how much your company is worth is what you stand to lose.
If you need help shopping for the right commercial insurance policy for your company, contact us at GTW Insurance for assistance.