When you decide to insure your business in Texas there are a lot of questions that pop into your head as a business owner, especially if you’re just starting out. Things can be quite confusing and you risk making a lot of mistakes that you’ll regret later on. However, there are some questions you can ask yourself in order to make the right insurance decisions for your business and keep everything covered to the right extent:
1. Check if your equipment or goods are insured properly while they are outside your premise. This includes trade shows, exhibitions and even transit.
2. What if the police call you at night because there’s a break-in to your warehouse or the flood has just smeared away your entire office? Will your insurance policy cover these situations?
3. What if you purchase new equipment, immovables or just redesign your current office? Will your insurance policy automatically cover the new additions or you’ll have to get in touch with your insurer and purchase a weaver for that?
4. Will your insurance policy pay the entire cost of rebuilding your premise in case it gets fully destroyed by an insured peril? And would you be able to rebuild your building in another location that would me more suitable for your operations than the last one?
5. Does the insurance policy pay for the lost income in case your office or production site is completely destroyed by fire? Or if it suffers partial damage and the business is seriously affected by this event? And what if you’re forced to postpone the repair works due to local regulations or change in building codes?
6. What happens if you borrow a friend’s truck to deliver your products and accidentally drive into a bus stop, injuring several people and facing a lawsuit for couple of million dollars? Will your business insurance apply since it wasn’t your vehicle? And will it settle the court judgment?
7. Will you business insurance policy pay for the losses caused by destroyed documents or important files being infected by a virus? What if you don’t have duplicates of those?
8. What if you sell a product overseas and after several months are informed about a lawsuit filed against you because the product you sold caused some damage or injuries? Will the insurance policy cover you against any lawsuits filed outside your state of residence?
9. Your employee drives his own car to get some supplies you need and ends up crashing into a store, causing serious damage and gets hospitalized for a couple of weeks. Who will pay for the damage caused to the other party, and who will settle the lost salary and medical bills for the worker?
10. Say you use your business credit card to pay for something while on vacation, say a rented car. And you end up having an accident while riding it. Will your business insurances pay for this? Who will cover the medical costs if you or another party is injured? And what if it all took place abroad?