So, you are shopping for small business insurance? Well, kudos to you for seeing the importance of protecting your business! Each year, there are thousands of small business owners just like you that not only lose their business, but also their livelihood, savings, credit, homes, and reputation due to lawsuits.
These reasons are why our team at InsuranceHub will share these 5 ways you can buy the best business insurance for your company. Let’s outline them first, then we will dive into them one at a time.
5 tips for buying business insurance.
- Assess your risks
- Educate yourself about a Business Owner’s Policy
- Shop Around
- Find a Reputable, Licensed Agent
- Assess Your Insurance Coverage on an Annual Basis
Let’s delve into these one at a time so that we can get the best coverage for you to provide adequate protection and minimize risks.
1. Assess Your Risks
How does an insurance agency know if they want to cover your business? Simply put, they check to see how risky you are. The first thing they do is establish the level of risk they’ll accept when issuing policies. This process is called underwriting, which is where the underwriter will review your application and determine whether it will provide all or a portion of the coverage being requested.
Next, when they decide that you are a good risk, they will underwrite a policy for you for the coverage. Each policy has a premium and a deductible.
What is a premium? Your premium is the price you pay for insurance each year. This will depend of course on your business location, building type, local fire protection services, and the amount of insurance you carry.
What is a deductible? A deductible is the amount of money you agree to pay upfront when making a claim. Simply put, the lower the deductible you pay, the higher your premium will be… and vice-versa.
So, when you assess your risk and can afford to pay a higher deductible, then you end up saving money on your annual premiums.
Protect your company with business insurance. Get a quick business insurance quote today.
2. Educate Yourself About The Business Owner’s Policy
When you’re buying business insurance, you might want to consider a business owners policy. Did you know that you can save money by getting a business owners policy instead of buying individual policies from different companies? You deserve to learn more about the Business Owner’s Policy or BOP.
3. Shop Around
Are you the type of person that buys the first thing they see or do you take the time to shop around? You don’t have to figure things out by yourself. Our team of advisors is here to help you through the process of buying business insurance.
Did you know that The National Federation of Independent Businesses offers free information for choosing insurance to help you assess your risks and to make sure you’ve insured every aspect of your business?
Here are some things to remember when buying business insurance:
- The extent and costs of coverage vary from company to company.
- When you’re buying business insurance, you might want to talk to an industry professional that understands the common problems unique to the type of business you are in. Many times professional brokers can get you the best coverage and the best rates.
4. Find a Reputable, Licensed Agent
Whom do you want to protect your business? Isn’t it true that you want someone that has a good reputation for going to bat for their clients? Here are a few things to remember before choosing a commercial insurance broker:
- Make sure your broker understands all the risks associated with your business.
- Ask friends and family.
- Talk to your peers and fellow business owners.
- Think about what you would look for in a good lawyer or accountant.
5. Have An Annual Business Insurance Checkup
As your business grows, so do your liabilities. No one wants to be caught unprepared when a disaster strikes. Have you purchased or replaced equipment or expanded operations this past year? If so, contact your insurance broker to discuss changes in your business and how they affect your coverage.
Get a quick business insurance quote today.
We hope you have found these tips for buying business insurance helpful! If you want some help shopping for your business insurance, we would be more than happy to help. Our insurance professionals can get you multiple quotes so you can compare coverages and pricing. Our goal is to help you get great business insurance at a great rate so you can save money.