To help navigate the waters of buying insurance, here are a few tips.
While no two companies will follow the same process when buying small business insurance, there are some basic steps everyone can take to get on the right path:
Finding the right people to have in your corner and finding the best policy will make your business stronger, no matter the size or industry. Everyone starts somewhere, so make sure you start your business on the right path to success with the right insurance partner.
You want to purchase a high quality, comprehensive small business insurance policy from a reputable provider. But at the same time, you have a budget to consider.
The best way to get the right policy at the right price is to understand the factors that impact insurance costs, which include but are not necessarily limited to:
Comparison shopping, combined with knowledge of how insurance companies price their coverage, will allow you to purchase a comprehensive policy that puts your mind at ease.
Whenever you make a large purchase, whether a car or a piece of real estate, you usually contact a professional, right?
It’s no different when it comes to purchasing insurance for your business. You are not expected to know everything, but you want to find a professional who does.
First, the bad news: Traditional insurance agents have little incentive to write small business policies because of how little commission they make on it. Fortunately, some insurance carriers and agencies specialize in small business, and are willing and able to help you find the right coverage for the right price.
So how do you find them? The right commercial insurance agent will be one who is willing to work with you and for you, and one who will educate you on the right policies for your small business needs.
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Insurance to protect you and your business should not be treated like a commodity. So, going for “the best deal” doesn’t always apply. The value of the insurance and making sure it covers all your needs is where priority should lie.
Other factors to consider:
Take your time to learn what protections and policies are vital to your business and that the insurer you choose really understands and caters to your business.
There are a number of commercial insurance policies all small businesses should consider.
Shopping around and comparing different plans will help you better understand your options and what policies apply to your business. Impulse buying is never wise, and it’s no different when it comes to the security of your company.
Keep shopping if you get turned down. Carriers differ in what they are willing and able to write, so if one carrier or agent can’t provide the coverage you need, keep looking.
As you compare policies, answer questions such as:
As with any insurance policy, your need for it often becomes evident only after something unfortunate occurs. Make sure you are ahead of the game and manning your business with the proper safety protocols — whether that means protecting your employees, your office space, your inventory or your data. Being proactive will give you peace of mind and can potentially help in policy renewal discounts.
If you do take preventative measures, ask your insurance agent about discounts. You may be able to reduce your insurance costs through recognized workplace safety programs, years without claims, and more.
This list is just a fraction of things to consider when shopping for a smart small business insurance policy. There is no way around it – it is a lot to consider. But the more you learn before you start your journey, the easier it will be.
Finding the right people to have in your corner and finding the best policy will make your business stronger, no matter the size or industry. Everyone starts somewhere, so make sure you start your business on the right path to success with the right insurance partner.
Editor's note: This post was published in 2018. It has been updated for accuracy and comprehensiveness and republished in 2020.