# How Much Protection Does Your Business Actually Need?

- Link: https://www.lumlawgroup.com/how-much-protection-does-your-business-actually-need/
- Published: 2019-08-08T16:30:21-07:00
- Author: Albert J Lum

If you own a business, you need insurance to protect it. The world is unpredictable.
Although you can take some precautions, you cannot control or prevent every problem.
An unexpected weather event can damage your main facility. An unforeseen problem
can injure someone using your product. Even as attorneys, we have malpractice insurance.
The amount of insurance protection your business needs depends on several factors.

## Where Are You Located?

Basic liability and[ commercial property insurance](https://www.myfloridacfo.com/Division/Consumers/understandingCoverage/CommercialPropertyInsurance.htm)
should handle most issues that happen at your physical location. The cost and limits
of that insurance are based on the location and nature of your physical space.

The reason an insurance adjuster will come to your location when you start a policy
is because the insurance company needs to have an idea of any potential risks. A
business located in a flood plain will have higher insurance costs than a business
in a safer zone.

It also makes a difference if you are a brick and mortar business where many clients
will come to you during the day or an online company with little direct customer
contact.

## What Do You Do?

Different businesses carry different kinds of risks. People can be injured in both
a family restaurant and a skydiving expedition, but the types of injury and risks
of injury are quite different. In the case of product liability, [insurance looks at the type of product](https://www.inscenter.com/business-insurance/liability-insurance)
your company makes, and how risky it is to be on the market. Your legal team or 
insurance company will ensure that you meet the legal requirement for your type 
of business. They will also advise you of expanded coverage options if you run a
higher risk business.

## What Sort of Equipment Do You Have?

Your employees are your biggest asset as a business, but they can also suffer injury
and bring claims against your company. The level of coverage you need can depend
on the type of equipment you use. Even with standard safety procedures, people are
injured by manufacturing equipment on a daily basis. Certain types of equipment 
also require regular maintenance and[ safety inspections](https://www.predictivesolutions.com/solutions_safety_inspections_checklists_audits).
On the other hand, an office worker has less exposure to serious injury, requiring
less in insurance coverage.

An uncovered claim can have a serious financial impact on your business. It can 
also take up time and energy as you work through the legal system. By making certain
that your coverage is sufficient and up to date, you are protecting your business
from the unexpected.

**For all your business advice needs, Lum Law Group is here to help. **[**Contact us**](https://lumlawgroup.com/Staging/contact-us/)**
to find out how we can best serve your needs!**