How to Split Commercial Insurance Costs in Business Partnerships

Insuring your business is a critical component of a comprehensive business plan.  

In a partnership, there are a lot of factors to consider when determining how the commercial insurance will be handled. Among those below are the two major items to be considered:

  • What are the Tasks of Each Partner? – Depending upon the nature of the business some partners decide that if a partner is bringing certain insurable skills and the other is bringing other skills that each respective partner will insure for the liability that may be incurred for that skill. For example in the case of a limousine business, one partner may have the fleet and drive passengers for the parties and other events, while the other partner in the business handles the information technology and promotional side of the business. These partners may decide to have the driver which would incur the most liability take care of the commercial insurance.    
  • At What Level Is the Partnership?  – If this is a newly entered partnership, the partners may decide to let the partnership develop further before combining or taking out the commercial insurance. Oftentimes, partners come together because one person fills a complimentary need of the other partner. Getting a clearer look at this can occur in developing the business plan. For the most comprehensive protection deciding how the company will be insured should be designed during this process.  

The insurance agents at JC Demo Insurance Group would like to continue the discussion. Serving the Matthews, NC and surrounding areas, we can advise on the best types of coverage to ensure your business is properly protected against liability. Stop in today to learn how a commercial insurance policy can be specifically tailored to meet the needs of your business.