As a business owner, you know that insurance is essential for protecting your business. But what kind of insurance do you need? And how much do you need? Here’s a guide to business insurance Lubbock TX businesses can use as a starting point.
How to choose the right Lubbock TX business insurance for your company
When considering business insurance, you should consider the available different types of coverage. Here’s a list of just some of the possible types of coverage that may be right for your company:
Insurance for specific Lubbock TX business needs
Public liability insurance: This insurance can protect you from claims made against your company due to bodily injury or property damage caused by your company’s activities. For example, if a customer slips and falls on one of your retail store’s wet floors, they might sue you for their hospital costs.
Commercial property insurance: This insurance can protect the business owner from damages to commercial property, including buildings, machines, equipment, inventory, office furniture, and fixtures.
Business interruption insurance: This insurance can provide financial protection in the event of a disaster that shuts down your business. For example, if a fire destroys your retail store and you’re unable to reopen it for months due to extensive damage, this coverage could help pay your expenses. At the same time, you focus on rebuilding rather than worrying about making ends meet.
Electronic data breach insurance: If you store and transmit customer credit card information electronically – as most businesses do – this insurance can provide financial protection if a data breach causes you to lose customers. For example, suppose the security of your systems is breached, and thousands of customer records are stolen. In that case, this coverage can help reimburse those customers for any fraudulent charges that result from their cards being used fraudulently.
Workers’ compensation insurance: If your company has employees, you must pay for workers’ compensation coverage, covering medical costs and a percentage of lost wages if an employee is injured or becomes ill while working. No matter how few employees your company has, it would help to carry workers’ compensation insurance.
Business owner’s policy: This type of policy combines commercial property insurance, business interruption insurance, and liability coverage into a single package. It’s less expensive than purchasing these types of coverage separately, and it may also provide additional coverages, such as data breach or identity theft insurance.
When choosing business insurance Lubbock TX companies offer, make sure to review the amount of insurance you need. If you choose to carry higher limits than your company needs, you’ll pay more for coverage than necessary.
How much does Lubbock TX business insurance cost, and how can you save money on it?
As with any insurance, understanding your coverage and what you need can help you save money on business insurance Lubbock TX companies offer. Here are some tips for slashing the cost of business insurance:
Increase your deductible: Business owners can reduce their premiums by carrying a higher deductible, which is an amount that must be paid out-of-pocket before a claim is submitted to the insurance company. For example, if your deductible is $500 and you suffer a loss that costs $5000 to repair, you would pay the first $500 yourself and submit a claim for the remaining balance of $4500 to your insurance company.
Increase your limits: If you’re insuring specific business equipment, such as computers or office furniture, you can get coverage for its depreciated value rather than the price you paid when you bought it.
Increase your deductibles and limits across the board: If you have multiple business insurance policies covering different types of equipment or coverages, consider increasing their deductibles and limits.
Look for specialized insurance: If you only need certain types of coverage, such as property or liability insurance, consider getting them directly from an insurer rather than through a business owner’s policy.
Make sure you’re insuring the right things: You might be able to save money on business insurance Lubbock TX companies offer by re-evaluating your coverage periodically. The right type of coverage can change as your business changes; for example, if you no longer sell products but instead work primarily with clients on projects, you might choose to get workers’ compensation insurance through an umbrella policy underwritten by an A-rated national provider.
You can save even more money by bundling your policies, letting you get all your insurance from one company. For example, if you’ve already got auto insurance for your vehicle and liability insurance for your home, bundling these policies with your business coverage might allow you to reduce or eliminate the cost of additional premiums.
If you’re thinking about bundling your policies, make sure you compare prices across multiple insurers. The offer of business insurance in Lubbock, TX, can vary widely in cost depending on your location and coverage needs.
How to reduce your risk as a business owner?
One of the best ways to reduce risk while keeping costs low is by making sure you’ve got an effective business owner’s policy in place. A BOP will protect your business from premises liability, which can be costly to handle on your own if another party sues for libel, slander, negligence, or infliction of emotional distress. It may also cover your computer systems from data loss, your vehicles from accidents, and third parties from libel or slander. You may also want to consider a crime policy covering cash, equipment, and records lost due to robbery, theft, or embezzlement.
If you are a business owner in Lubbock, TX, it is essential to have insurance. Business insurance can protect your company from various risks, including property damage, liability claims, and employee injuries. There are many different types of business insurance policies available, so it is essential to work with an agent to help you find the right coverage for your company. At Second Western Lubbock TX Business Insurance Group, we specialize in helping businesses in Lubbock get the protection they need. We offer a wide range of commercial insurance products and services, and we would be happy to discuss your options with you. Contact us today to learn more about our business insurance products and services.