Having either too much or too little commercial insurance can be a problem. With too much coverage, you're wasting money that could be spent on other strategic needs. Without enough coverage, you're putting your entire business in jeopardy. Here are some ways to find the right balance.
Consider What Others are Doing
As far as knowing how much insurance you need, it can vary based on your industry and the stability of your business. It can be helpful to speak with other business owners in your area and your industry to see how much coverage they have. If you don't have access to any trusted sources of information, then consult a commercial insurance broker. They can pull up some numbers based on similar businesses they've worked with. Look at the statistics both for amounts spent on insurance policies, but also the types of coverage bought by businesses in your arena.
Consider Ways to Reduce Your Payments
There are many ways that you can reduce your payments if needed. For instance, with disability insurance, you might consider limiting the payout amounts. While some disability plans default to paying the person's full salary, you can get the amount reduced to covering living costs instead for disabled workers. This should effectively decrease your monthly payment while still providing adequate coverage to workers. Similarly, you might want to decrease your property insurance coverage for certain items. For instance, cutting equipment out of your insurance can be helpful. You may not even want the same equipment anyway, and you'll have the ability to make upgrades or rethink your needs.
Reduce Risk With Action, Not Insurance
Another thing to think about is that insurance isn't the only way to make your business safer. This could be a good time to think through your business methods and take steps to secure your business. In the arena of cyber attacks, for instance, you might consult a specialist to make sure that your networks are secure. Investing in fire suppression equipment will help to reduce risk to your physical servers. Adding a more secure locking system to your building will eliminate some risk of intruders. Taking steps to promote safety in your office will mitigate risks for workplace injury or disability. And thinking through your legal documents can help to protect you in case a customer decides to sue you for liability. These may be one-time costs that can help keep your business safe without you adding more to your monthly premiums.