What legal documents do insurance companies ask for when applying for small business insurance policies?

You see, our businesses are prone to uncertainties and risks; and it is our duty to manage these risks. When you protect your business from risks, you are not only doing it for yourself or for your business; you do it for your customers who rely on you to always deliver and never disappoint.

You do it for your creditors who expect you to continue to remain in business so that you can pay off your debts. You do it for your employees who rely on the income they get from working for you and you do it for the government who expects you to pay your taxes so that it can be used for improving the society. Simply put, your business cannot fail; you have to do everything within your power to protect your business from failure and insurance is one of the best ways to go about it.

Business insurance involves protecting all of your business assets, both tangible and intangible from losses. It helps to protect your business against any claims or liabilities as well. Some of the necessary insurance policies to obtain for your business include-:

Example of Insurance Policies your Business Needs

  • Property and Casualty Insurance-: This is coverage of your business premises from natural disasters like flood, earthquakes, Tsunamis, etc; and also from losses caused by human errors like fire or theft. Casualty insurance on the other hand covers any losses that affect the operations of a business.
  • Employee theft insurance-: This would protect your business in case a dishonest employee decides to make away with your funds.
  • Auto Insurance-: If you have vehicles that you use in running your business, auto insurance would protect you from any damage or loss of your vehicles and also any damages that your business vehicles may cause to other people.
  • Political risk-: This protects your business from government policy changes that may adversely affect your business.
  • Liability Insurance-: If you operate a service based business, you may be sued for professional negligence or if something happens to someone while on your premises, they may hold you responsible for negligence.
  • Product liability Insurance-: This covers for damages that may occur or injuries suffered by people as a result of using your products.
  • Business Interruption Insurance-: Another insurance product for businesses is business interruption insurance which would ensure that the company has enough funds to meet its obligations whenever events that threaten the company’s income or profitability occur.
  • Health insurance-: This covers the medical expenses of your employees and gives them access to affordable healthcare.
  • Life insurance-: This covers the life of your employees and officials of the company in case of death or disabilities.
  • Workers Compensation insurance-: If workers get injured in the course of performing their duties, you would be required to compensate them and this is what this insurance product is for.
  • Umbrella policies-: This kind of insurance product has a little bit of everything. Instead of going for different policies that may cost you much, you can significantly cut costs by opting for umbrella policies.

The documents you would need to apply for insurance for your business include-:

9 Legal Documents Needed to Apply for Business Insurance

1. Information on Business Location-: The insurance company would need some information about your business address as well as addresses of all your branches. If it is a rented place, then details of your landlords name and address would also be needed. Other information about your business premises like the size and area, the material used for construction and safety facilities put in place would also be required.

2. Details of Company Vehicles-: For Commercial Auto Insurance you would need to provide the title document proofing that the vehicles belong to your company, descriptions of your vehicle like the model, color and make and also, your vehicle identification number.

3. Employee information-: For insurance coverage that has to do with your employees like employee liability and health insurance, you would need to provide details of the names and addresses of your employees, details of their children and spouses, addresses as well as date of birth and social security numbers.

4. Bank information-: Details of your bank account and credit information may also be required.

5. Record of Business Assets and Liabilities-: The insurance company may also require you to provide a list of all the assets of the business as well as business liabilities.

6. Driver’s information-: Another document required for commercial auto insurance is the driving license of your employees that would be in charge of driving the company’s vehicles. Also, for insuring some mechanical equipment which would be operated by humans, the insurance company may require licenses or certifications to prove that these people are licensed to operate the equipment.

7. Existing insurance policies-: This is needed if you are switching insurance providers or trying to change your insurance coverage.

8. Business registration and incorporation documents-: Insurance companies may also ask for your copies of your business registration documents, certificate of incorporation and your article of association.

9. Health and Safety Policy documents-: Another required document is your health and safety policy document to show the insurance company that you are taking steps to minimize business risks.

10. Professional Certificates-: For liability insurance, the insurance company may ask for evidence to proof that the staff and officers who would be in charge of handling the operations and management of the business are qualified and experienced to do so. This would reduce the risks of negligence.

These are some of the documents you are likely to be asked to provide. However, the documents required differs from one insurance company to another and would depend on the policy you want to purchase.

In conclusion, you shouldn’t just stop at buying insurance coverage for your business, you should also take steps to reduce and manage business risks to avoid losses. For instance, if you manufacture products, ensure that the products go through to all quality control tests and that best practices are adhered to in manufacturing the products. Your business would be better off when you do your best to prevent unfortunate occurrence.

Ajaero Tony Martins