You formed a company or LLC, but now what? Here`s what you need to do next to get your business off to a flying start. As with most things, it`s worth looking around. However, be wary of choosing the cheapest insurance or eliminating certain types of coverage just to save money. A bare policy may not protect you if you actually need to make a claim. Even worse, many policies have “co-insurance clauses” that can only result in partial payment if the insurance company determines you were underinsured. Other factors considered by small business insurers include the type of business assets, business assets, your location and payroll size. By assessing your risks, selecting appropriate coverage, and tracking the claims process, you help ensure your business gets the coverage it needs when it needs it. Like other types of insurance, commercial liability insurance is based on an assessment of your risk. If your business has a history of accidents, or if your business is in a hazardous area like coal mining, you`ll have to pay higher prices for your insurance. If your business is new, your insurance rates may be based on your personal credit and may be high in the early years.

If you work in medicine or law, you are more likely to need malpractice insurance than professional liability insurance. Research insurance coverage. Learn about the types of coverage for small businesses to tailor your business to the right type of coverage. You`ll need the coverage required by your state`s laws, but you should also consider general liability and other types that protect your investment. Pay your premium in full annually. Your insurance company may give you a discount if you pay your professional liability bill all at once rather than monthly. This strategy can also be applied to other types of insurance for small businesses. To make sure you meet your state`s mandatory small business insurance requirements, contact your state`s insurance department. Classify workers correctly. Make sure you have detailed and accurate job descriptions for your employees and make sure they don`t do any work outside of their classification. These efforts can save money on workers` compensation insurance.

An insurance agent who is familiar with workers` compensation can help you choose the right classifications. To purchase business insurance, contact an insurance agent who specializes in small business insurance. You often save money by getting a business owner insurance policy that combines multiple types of business insurance into one policy. In a quarrelsome society, a mistake or oversight can cost your business dearly. You may have to pay legal fees, court fees and the cost of damages caused by your business. For this reason, commercial liability insurance is a wise investment, but it is generally not required by law. However, you will need to take out liability insurance if your business involves actions that require insurance, such as: Motoring. If you`ve formed a company, limited liability company, or other business entity, you may not know you still need insurance. There are several other types of insurance you should consider for your small business, even if they are not required by law: Your state laws may require you to purchase this type of small business insurance. Jane Haskins is a freelance writer who has been practicing law for 20 years.

Jane has handled a variety of commercial disputes. Read more Even if you don`t need to purchase liability insurance, waiving insurance could become a legal issue. Even a small lawsuit can cost thousands of dollars in legal fees to defend you. If you don`t have significant savings, you could go into debt as a result of a single lawsuit. If you lose and can`t pay the money, the judge may put a lien on your property. A company can even be pushed into insolvency by a lawsuit. In addition to the above, it is important to know that other types of commercial insurance may be required by your state. For example, some require disability insurance and others require insurance for certain types of business transactions, such as those that provide legal or medical services or serve alcohol.

Make sure you know what your insurance covers and ask your agent for clarification if you need it. If your policies need to be renewed, look at the competition and make sure you always get the best deal for your business. There are different types of commercial insurance, each designed to protect against a specific set of risks. The insurance your business needs depends on its type and size. Increase your car insurance deductible. You can save money on commercial auto insurance by increasing your deductible. A deductible is the amount deducted from an insurance claims audit. With a higher deductible, you`ll pay less for insurance, but you`ll have deducted a higher amount when you make a claim, so make sure you can cover the difference.

Lucy Lazarony is a personal finance writer and journalist. Her articles have appeared on MSN Money, The National Endowment for Financial Education, AARP and Woman`s Day. Prior to freelancing, she worked for seven years as an employee for Bankrate. She earned a bachelor`s degree in journalism from the University of Florida and spent a summer as an international intern at Richmond, the American University of London. She lives in South Florida. You need sufficient professional liability insurance to cover the potential cost of a serious error. This amount varies from company to company. In a high-risk business like construction, you might need hundreds of thousands or even millions of dollars to cover injuries and property damage.

However, if you`re in a low-risk business, you may only need enough to defend a lawsuit. Professional organizations and your peers can give you an estimate of the right amount insured for your area, and your insurance agent can tell you the average number of insurance companies like yours.