Earthquakes, floods, wildfires, and other catastrophic events can put small businesses at risk. Consider these do’s and don’ts when shopping for small business insurance in Hawaii. Having adequate insurance coverage is essential to protect businesses from the unexpected.
Small business insurance can help cover the costs associated with liability claims and property damage. Without proper coverage, companies may be responsible for out-of-pocket costs, which could be financially devastating for small business owners. When shopping for small business insurance in Hawaii, consider these do’s and don’ts.
Small Business Insurance Do’s
1. Do Analyze the Business’s Needs
Every small business is different, and their insurance needs may vary. Consider the risks the business faces and what coverage can provide the best protection. For example, small businesses in Hawaii encounter the occasional tropical storm. Hurricane insurance can safeguard the business against physical damage to buildings damaged during these natural disasters.
2. Do Ask Lots of Questions
Failure to carefully read through insurance documents and ask questions can result in potential gaps in coverage. Do not hesitate to ask the insurance agent for more information about policies and what a policy covers and does not cover.
3. Do Acquire Commercial Umbrella Insurance
A small business may discover its standard business insurance policy is not enough in times of crisis to cover the extravagant costs that may result from an unexpected incident. Commercial umbrella insurance provides small businesses with an extra layer of liability protection covering costs beyond other liability coverage limits.
4. Do Provide Regular Updates
Small businesses grow over time, and with this growth could come additional risks. It is important for businesses to keep their insurance agent informed of any changes to the business to ensure that their coverage is up to date.
5. Do Consider a Business Owner’s Policy
Instead of purchasing multiple small business policies, consider acquiring a business owner’s policy (BOP). A business owner’s policy combines business liability insurance with business property insurance. With a BOP, small business owners are protected from claims that result from perils such as theft, fire, and certain covered disasters.
6. Do Work with an Agent Who Can Meet All of Your Insurance Needs
For startups and other small businesses, juggling personal and business insurance policies can be confusing. Small business owners should work with an agent who can cover their personal and business insurance needs when possible. Many agents will also provide discounts to customers who bundle their policies, resulting in greater savings.
Small Business Insurance Don’ts
1. Don’t Underinsure Your Business
Operating a small business can be costly, and business owners always look for ways to cut costs. However, not getting the coverage that a business needs to protect against risks is never a good idea. Small business owners should ensure that they are properly covered against risks and that the policy does not contain any clauses that limit the amount of coverage.
2. Don’t Withhold Important Information
Insurance companies typically review a company’s financial profile to determine how much coverage they are willing to extend to protect the business. It is important that small business owners provide their agents with all of the necessary documents they need to make decisions regarding coverage accurately.
3. Don’t Choose a Policy Based on Cost Alone
While every small business has a budget they must consider, do not choose an insurance policy solely based on its cost. A great agent will tailor a policy to meet the unique needs of a particular business. Although a cheaper policy may be available, it may not offer coverage the small business needs to stay protected.
4. Don’t Overlook Specifics of the Policy
It can be easy to overlook important details of a business policy, especially when you do not know what to look for. Pay close attention to aspects such as coverage specifications and the deductible. These things can significantly affect how much a small business owner may pay out of pocket when filing a claim.
5. Don’t Forget to Acquire Earthquake Insurance
Most standard business insurance policies do not include earthquake insurance. According to the USGS, Hawaii averages approximately 100 magnitude-3 or greater earthquakes, 10 magnitude-4 or greater earthquakes, and one magnitude-5 or greater earthquake yearly.
Earthquake insurance can provide small businesses in Hawaii by covering losses and physical damage that earthquakes cause to a business.
Call Atlas for Business Insurance
Acquiring insurance for a small business can be challenging. Small business owners do not want to waste money by purchasing too much coverage but do not want to risk being underinsured.
Working with an experienced insurance agent can help ensure that your small business insurance needs are met. Contact Atlas Insurance Agency today at (808) 400-6634 to learn more about your insurance options or to request a quote.