Commercial insurance comes in handy in protecting your business against liabilities, accidents, natural disasters, and other risks. While business insurance is crucial for your business, do you ever ask whether the coverage you have is adequate?
Unfortunately, many business owners in Denver, CO, and other parts of the country only have the state-required commercial insurance coverages. Whereas this might seem like a well-thought-out savings strategy, it could become catastrophic when certain risks strike.
Not sure if you have adequate business insurance? AFI Insurance is here to guide you.
General liability insurance
While this coverage isn’t mandatory in Colorado, it’s crucial in protecting your business against liabilities from third parties. But how much of this insurance do you need? The first step is to understand your business. How risky are your products? How safe is your working environment? These questions will guide on the amount of liability coverage needed.
If you find your business at high risk of liability claims, it will help to consider umbrella insurance. This coverage provides extra liability protection when your typical commercial insurance coverage runs out.
Commercial property insurance
How are your business’ assets financed? If they are financed by a lender, find out the minimum insurance requirements as per the loan agreement.
Additionally, know the value of assets. And here, you could consider the actual cost of the asset or the value it would cost to replace your assets today. If the asset is pivotal for your business, you are better off with the replacement cost. However, premiums based on this value are usually higher than the historical cost.
Commercial auto insurance
Since this coverage is mandatory in Colorado, the first step is to satisfy the state requirements. Colorado requires all commercial vehicles to have commercial auto liability coverage of $25,000 bodily injury per one individual and twice the amount per accident. Besides, you are required to carry property damage liability with a minimum of $15,000.
While these are the required coverages, you must consider higher limits for well-rounded protection.
Get commercial insurance coverage today
Still not sure about how much business insurance you need? Please talk to AFI Insurance of Denver, CO. Better yet, we will help you get affordable coverage.