Michael Saltzstein On Insurance Policies Every Business Needs

 

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Like every business owner, you want to scale your venture and eventually take it to the next level. But let's face it—business success is never guaranteed. Michael Saltzstein shares that even the wealthiest entrepreneurs bombed several projects over their years in business. 

Does this mean you should give up your plans altogether? Of course, not! Although you can't eliminate all the risks your business faces, you can minimize potential damages through insurance protection. It protects you from severe financial losses. Depending on your policy, you could walk away from even the worst accidents, disasters, or lawsuits with minor damage.

While there are dozens of business insurance policies, you might not need most of them, so don't blindly agree to everything your agent offers. Michael Saltzstein suggests looking into the following first:

General Liability Insurance

Depending on the nature of your business, most states will require commercial general liability insurance (GLI). It covers the property damages and bodily injuries caused by your company. For instance, contractors need adequate coverage before getting construction permits.

Your coverage needs will depend on your business. However, most real estate, law, and logistics companies purchase at least $1 million per occurrence.

Commercial property insurance covers potential damages to your business space, regardless of whether you rent or own it. However, Michael Saltzstein encourages clients to read the fine print. Most policies don't cover certain natural disasters, which could be problematic if you live in earthquake and flood-prone areas.

Workers' Compensation Insurance

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The law requires businesses to get workers' compensation insurance when they hire their first employee. It covers workers who get sick or injured on the job. As an employer, it is crucial to read the scope and limitations of your coverage; you might end up paying certain expenses out of pocket if you have a restrictive policy. Get insurance that supports everything, from treatments to maintenance.

Commercial Auto Insurance

Most states require businesses to insure their work vehicles. If you own semi-trailer trucks, you might have to purchase added coverage for your drivers, cargo, and passengers, Michael Saltzstein adds.

Using Insurance to Mitigate Risks 

When mapping out your insurance plans, Michael Saltzstein encourages going beyond the state-mandated coverages. Don't automatically opt for the minimum just to save money. Yes, higher policy limits will spike your premiums, but they'll also prevent the worst-case scenario in a covered event. Remember: prevention is better than cure.

Also, consult your insurance attorney and risk management department on any extra policies your business might need. Again, the list mentioned above only serves as a starting point. Michael Saltzstein explains that you'll also need non-state-mandated policies targeting industry-specific risks.