How to Prepare a Business Insurance Checklist

Business insurance protects a business from unmanageable risk. Business insurance policies are available to small and medium size businesses that meet certain criteria. If you do not qualify for a business insurance policy, or you have additional insurance needs, the following check list will assist a business owner in determining if your company is adequately insured.

Instructions

1. Assess if a policy provides coverage for business assets and property in case of fire and other catastrophes. Coverage should ensure a business can replace or repair damaged property and physical assets.

2. Check if the general liability provisions provide adequate coverage. Injuries can occur unexpectedly and litigation is costly. Umbrella policies are often purchased to provide extra coverage.

3. Review your auto insurance needs. Are vehicles owned by the company or used for business purposes insured for collision and personal injury? Business Auto Insurance is not always covered by a business insurance policy.

4. Ascertain if your company is mandated by state law to carry certain types of insurance. Workers Compensation insurance is required for companies who have a certain number of employees. The number varies according to each state's laws.

5. Determine if your company needs Business Interruption Insurance, which provides lost income to a business during an insured loss. This type of coverage is not normally included in a business insurance policy.

6. Consider if the business should purchase Key Man Insurance, to protect the business against the death or disability of a key employee. Key Man Insurance is purchased in addition to a business insurance policy.

7. Evaluate any specialized needs that are not covered by a basic business policy. Directors and Liability Insurance (D&O), Errors and Omissions Insurance (E&O), Employment Practices Liability Insurance (EPLI), Earthquake and Terrorism insurance should all be considered.