You may be starting a new venture and looking for business insurance or shopping around for comparisons to your current business insurance. Either way, doing your homework before “signing on the dotted line” is crucial. Rates will vary from state to state, but the following five questions are universal for the most effective business insurance.
- What insurance policies do I need for my business?
There are many types of insurance policies that may be required or beneficial for your company. This is a subject to discuss with a reputable insurance agent such as Haberman Insurance,who offers a wide array of policies that can be tailored to your needs. However, before this meeting, do some research to identify which types of business insurance you might need or want for your company. The more common types of business insurance include, but are not limited to:
- Commercial Property
- General Liability
- Workers’ Compensation
- Product Liability
- Commercial Auto
Some of these coverages are required by regulation or contract (mortgage, business loan). Others are essential to the financial well-being and success of your business. If your business fills a unique niche in the community, you might be surprised to find a policy that exists for your specialty.
- What does business insurance cost?
The cost to insure your business varies according to your needs, the state in which your business is located, and policy particulars such as coverage amounts and deductibles. Also factored into the cost of your policy are the size of your business, the number of people you employ, if you own or rent the building, if your business owns or leases any vehicles, and other factors specific to your company.
For example, the premium for a general liability policy takes into consideration the size and industry of your business. A policy for a one-person graphic design company would cost less than one for a bakery with ten employees and a steady stream of customers.
In many states, workers’ compensation policy premiums are based on the employees’ annual salaries and the risk involved in their jobs.
- How do I know my insurance quote is fair and accurate?
Many insurance companies offer business-related insurance policies. After thoroughly reviewing your wants and needs, your agent will likely present you with multiple quotes which will give you a general idea of the cost to insure your business.
Review the quotes closely to ensure the information is correct, including the number of employees, type of business, etc. This all should be clearly reflected in the offers presented to you. Also included in your quote should be the coverage to be provided, the amount of each and any associated particulars, such as a deductible.
So, with several comparable business insurance quotes in your hand, which do you choose?
- Is the insurance carrier dependable?
Time again to do your homework. Check out the insurance companies who have provided you with quotes. Begin with their website for general information about the company and move on to check financial ratings and reviews. Ensure that they are licensed in your state for the type of insurance you are buying. For instance, Company A might be top-of-the-line for general liability insurance but may not be for workers’ compensation coverage. You owe it to your business and to yourself to be an informed and aware consumer.
- What do the existing customers say?
And finally, the company may look good on paper but are their customers happy? Do they pay claims fairly and promptly? Are they responsive to questions and concerns from their policyholders?
Business insurance is crucial to the success of your business. But getting the best coverage for the most affordable price and with a reputable carrier is equally as important.