Q:I know I need business insurance, but how do I know if I have the right policy?
A: Although some people may disagree with this statement, you can almost never be over-covered, especially in this day and age. Unfortunately, you'll never really know if you have the right business insurance until you retire or sell your company. By then, if you've gone through any crises and didn't lose money or much income because your insurance company was there for you, you'll know that you chose wisely.
As a rule of thumb, one important type of business insurance to consider is business interruption insurance. Sure, you'll want to cover your assets with something like property and casualty insurance, but if your company is unable to earn income for three or four months because you're rebuilding the premises, you want to know that money will come in to bridge that gap. Or you may find that a major supplier is hit hard by a hurricane, an illness or another devastating event, and you need business interruption insurance to keep you afloat until you find a new supplier. What you really need to do is talk to your insurer or find an insurer you trust and have a discussion with him or her. Be candid about what problems your business could possibly face. If you or your employees frequently travel to dangerous countries, there's actually a type of insurance to help you in the event that somebody from your company is kidnapped and held for ransom.