How Much Commercial Insurance Do I Need?

Every business faces unique risks. Commercial insurance comes to your rescue when faced with different risks, from employee injuries, liability claims to errors in professional services. But how much insurance do you need? The reality is that there is no definite answer to help you determine the amount of commercial insurance sufficient for your business. However, as you will find from Gallina and Sons of Pittsburgh, PA, there are tips and tricks you can follow to see the amount of commercial insurance you need.

How much commercial insurance is sufficient for my business?

How much commercial insurance is adequate — not too low and not too much. It depends on the nature and size of your business. Here is a guide to help you determine the amount of business insurance needed:

  • Property insurance: Before drawing the check, ask yourself. What’s the value of my business assets? Ideally, the amount of commercial insurance should be equivalent to the cost of replacing your assets. Also, bear in mind your lender’s requirements if your assets are mortgage financed.
  • Worker’s comp insurance: The amount of worker’s comp insurance needed largely depends on the size of the workforce. The more employees, the higher the amount of coverage required.  
  • Liability coverage: This is usually tricky. However, deciding the amount required starts by evaluating the risk profile of your business. But before investing in liability insurance, you should ensure that your workplace safety measures follow best practices to reduce the number of claims. Also, establish the existence of any state minimums — you shouldn’t stick to these. They just act as a foundation on which to build on your coverage.

Figuring the amount of insurance needed for a business needs the help of an experienced insurance agent. So if you are in Pittsburgh, PA and its environs, please partner with Gallina and Sons for all your commercial insurance needs.