According to one national survey, nearly 60 percent of businesses are seriously underinsured. In the event of a major claim, the survey showed that the underinsured could find that the upper limit of their policy payout is 20 percent less than what they need in today's market.

Just because you have an insurance policy, doesn't mean you have the right one. The difference between the right policy and the wrong one could cost your business hundreds of thousands of dollars if your insurance coverage is not adequate. When a loss happens, you need help - what you don't need is to learn that there is no coverage to recoup your losses. The best time to get educated is now, before that scenario occurs.

The Coverage You Need

Unlike other businesses, there is no standard policy for your industry. The rental and equipment dealer has various unique risks and coverage needs that need to be individually evaluated for the proper insurance coverage. There are several factors that you should consider when insuring your business.

Make sure you are insured with a specialist
Don't insure your business with someone who doesn't know your industry. Just because your brother-in-law sells home owner policies doesn't mean that you should let him write your insurance. You may be doing him a favor and not yourself. Seek out someone who understands and works in the industry and can provide you the maximum coverage available.

Choose financial Strength and Stability
Make sure you are with an A+ rated insurance carrier from A.M. Best. You can find out how your current insurance carrier is rated at www.ambest.com. This rating system shows a client what a company's financial strength is and its ability to meet their obligations. Remember, an insurance program is only as good as the company that stands behind it. Be cognizant of the inferior choices out there that may leave your business vulnerable.