There is no universal answer to how much business insurance you need, because it depends on your industry, your assets, your contracts, and your risk tolerance. But there is a sound method for arriving at the right amount.
List what could actually go wrong in your business: a customer injury, a lawsuit over your work, damage to your equipment, a data breach, an employee injury. Each of those points to a coverage, and the size of the potential loss points to a limit.
Clients, landlords, and lenders often set minimum coverage requirements. Your limits need to satisfy those, so gather any contracts before you decide.
Higher limits cost more but protect more. A common approach is to carry enough that a serious claim would not threaten the survival of the business, then consider an umbrella policy for catastrophic events.
Rather than guessing, walk through your exposures with a licensed agent who can match limits to your situation. Get a free quote or learn more about business insurance.
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