Some insurance companies specialize in small-business insurance coverage. While shopping for business insurance, a business owner should keep in mind that coverage are not always standard between companies.
A common breakdown of a small business insurance policy would include: accounts receivable coverage up to $25,000 (higher limits are available); coverage for contractors’ equipment that is both at the job site and that is in transit; building materials that will become a permanent part of the structure, plus the labor involved with completing the installation; and peak-season coverage that automatically increases limits by 25 percent during peak inventory periods.
Deductibles for property insurance can be calculated on a per- claim or on an aggregate basis. The out-of-pocket cost for per- claim deductibles is often lower, so if a business owner is in a business that has a relatively low chance of filing a claim, he or she may consider this. Companies with a lot of claims would do well to consider calculations on an aggregate basis.
A business owner should make sure the full value of an item is insured and check the terms for reimbursement. Just because a $1 million in coverage was purchased doesn’t necessarily mean the whole amount is going to be applied in a given category of property. If a company has a variable growth pattern, the business owner may want to adjust coverage annually.