The goal of business insurance is to reduce risk. You purchase a policy that protects the types of risks applicable to your company. Yet, to do that, you need to know what risks are out there. For most companies, there are basics that apply. However, many owners don’t fully understand all areas of risk associated with the company until they conduct a risk assessment. This information can prove vital. Here is more information on how to conduct a business insurance risk assessment.
The Questions to Ask 
Your business insurance agent will help you assess risks within your operations. It is a component of the work they can usually do for you. Yet, you can start by asking a few key questions.
- Do You Own a Physical Location?
This may include any area where you operate your business. It may be an office, warehouse, or other structure. Any location where you work with customers or provide storage for your equipment needs coverage. However, if you rent, rather than own the space, your needs might change.
You may need to enhance your business insurance with workers’ compensation coverage if you have employees. In some cases, states will require you to get coverage. It will help you pay employees if they get hurt on the job. You want to protect your employees from injury.
Also consider the acts that impact your business from employees, such as claims of misconduct or claims of wrongful termination. This is not something workers’ compensation will cover. However, other policies like EPLI coverage might.
You should determine the risk associated with product sales. This includes getting protection for failures of that product. You also want to consider coverage that minimizes any lost profits you have should there be some loss of your product. This may include damage in transit or product loss related to theft.
- Do You Provide a Service or Professional Advice?
Having ample coverage for these risks is important. An enhanced liability policy, such as a professional liability insurance policy, works to reduce some of this risk should your service fail. You also want to consider protection in case of large-scale lawsuits.
- Do You Have Numerous Locations?
You may have more than one physical area where you operate. It is important to cover all areas with comprehensive risk coverage. Having a policy that covers risk across all properties may help reduce overall costs. How you get this coverage might vary, so speak to your agent about how to do so.
Risk assessment is essential. It provides insight into what could happen. It allows you to select business insurance that addresses all of these potential risks. By doing so, it helps you avoid losses.