Any good business plan should include a contingency for locating and purchasing insurance. With as much effort and forethought as you’ve put into setting up the rest of your business and getting the operation under way, the last thing you want to skimp on is the insurance. Understandably, however, you don’t want to pay more for it than you absolutely have to. Also, you want to be sure you’re getting the insurance that is right for you. To do this successfully, you must determine what coverage you truly need, and then obtain several small business insurance quotes.
Your first step will be to assess your business’ risks, which must be done with the aid of an experienced commercial insurance agent or a risk mananger. This process consists of putting together an application, which the underwriter then reviews to determine whether the risk-to-benefit factor is within the carrier’s purview. Depending on the type of business you’re running and the inherent risk factors involved, the underwriter will devise a premium (the price you pay for the insurance) and a deductible (the amount you have to cover out of pocket before the insurance kicks in). As a rule, a higher deductible translates into a lower premium and vice versa.
It’s in your best interest to get several small business insurance quotes before signing up for a policy, however. You may find that one company’s offer differs significantly from that of another carrier. This doesn’t mean that one company is trying to “rip you off” or anything of that nature; it’s just that different companies specialize in different sorts of insurance and are therefore sometimes in a position to make a better offer.
Shopping around for the best deal is simply the smart thing to do. These days, small business insurance quotes are easy to obtain, thanks in part to the Internet. Many carriers provide online quotes and most offer a plethora of information about their individual policies and coverage options.
One independent source you’ll want to check out is the National Federation of Independent Businesses which provides a wide variety of helpful information regarding choosing a policy, assessing your company’s inherent risk and helping you determine exactly what sort of insurance, and how much of it, you need to keep your business safe should unforeseen circumstances manifest themselves.
Once you’ve done a little research—and this is something on which you should most certainly not skimp—it’s time to find a reputable, licensed agent. A good commercial insurance broker will be able to provide additional quotes and will be able to help you refine your insurance needs and make certain you haven’t overlooked any potential gaps in your coverage. Finding the right broker can be a bit of a hit or miss proposition, since most do work on commission and may therefore be tempted to sell you a policy that may not exactly suit your needs. Your best bet in this regard is to do still a bit more research online; look for reviews posted about several different brokers and choose the best from among them.
Disclaimer: The information provided in this article is for informational purposes only and may include generalizations or information subject to change. While every effort is made to ensure accuracy, errors or omissions may occur. This content does not constitute professional insurance advice, insurance coverage advice or an offer of insurance. For specific questions or personalized assistance, please contact one of our licensed agents by calling 888-506-2835.
