Buying insurance for your business is extremely important on many levels. Not only will this keep your organization safe against many risks, but it will also take a lot of stress out of your day-to-day operations.
By following the five steps below, you can assess what type of insurance is best for your business as well as how to secure the proper coverage.
1. Assess your risks. As you can imagine, not every business takes on the same level of risk. This is based largely on the industry in which you work. When issuing a policy, an insurance company will assess the risk of your company and then make a final determination on whether or not to extend an offer of coverage.
After the insurance company reviews the policy, they will decide whether to offer all of the coverage being requested or a portion.
Risk factors vary, but some of the most common include: the location of your business, the industry, local fire protection services, and how much insurance you need.
2. Compare your options. Just like any type of insurance, you need to compare multiple companies and policies before making a purchase. This is the insurance you will rely on to protect your business against a variety of risks, so making an informed and confident decision is of utmost importance.
When comparing your options, search for a company that has experience working with others in your industry. This can go a long way in helping you purchase the appropriate coverage.
3. Learn more about a business owner’s policy. You can purchase separate policies from a variety of insurers or in one “large package” known as a business owner’s policy. When you purchase multiple policies separately, you will typically spend more money in the end.
With a business owner’s policy, the following types of coverage are usually included: general liability, property, business interruption, and vehicle. Of course, you can opt for what you need while leaving out the rest. With this option, you are simplifying the buying process while also saving money.
4. Only purchase from a licensed agent or broker. If you need somebody to do the legwork for you while walking you through the process, consider contacting a commercial insurance broker. Your broker will collect all the necessary information, provide you with quotes, and answer all your questions. Best yet, you don’t have to pay this person a fee. They collect a commission from the company you purchase from.
5. Reassess your situation every year. As your business grows there is a chance that your insurance needs will change. Maybe you hired more employees over the past year. Maybe you moved locations. Maybe you purchased additional equipment. These are all things that will affect how much insurance you need.
When you follow these five basic steps, you will be in position to purchase a high quality business insurance policy from a reputable agent or broker. Like any type of insurance, multiple options exist. It is important to compare several companies and policies until you find the coverage that is best for your company’s needs.