Just as homeowners insurance is there to protect people financially from disasters, business insurance exists to protect business owners from financial disasters. New business owners may not know where to start when it comes to finding the right business insurance options. Business insurance attorneys recommend the following tips:
1. Perform an audit of your risks. The way business insurance companies decide to cover or not to cover a business is by looking at how risky they are. The best way to get a great rate on your business liability insurance coverage is to show that yours is not a risky place. You can also consult with an expert in your industry who can help you work out what your exact risks are.
In insurance terms, the process of making this determination is called “underwriting.” The underwriter at the insurance company goes through applications from business owners and decides whether or not an insurance policy can be offered. They also decide what kind of coverage they can provide.
The underwriter will set your premium and deductible. The premium is the price you pay each month or year for the coverage you have. The deductible is the amount you have to pay when you file a claim. Plans with high deductibles have lower premiums. This is similar to the way car insurance works. If you have a good idea of what your risks are, you can make a more informed decision about whether you want a lower premium or a lower deductible.
2. Know what’s what. Make sure you understand the ins and outs of the business insurance policy. Many people seek out advice from business insurance attorneys before they sign anything. Whenever you are going to sign something as important as your business insurance, it is a good idea to talk to an expert who specializes in the kind of law that pertains to the contract. Talking to business insurance attorneys about a plan you may want to buy can only help you.
3. Get a few quotes. When you are out looking for the right business insurance for your company, you should never go with the first company you talk to without talking to others. After you have spoken with at least three companies, you will have a better idea of what your options are what you can expect to pay.
4. Get everything in writing. When you ask different companies to give you details about the policy you will get, make sure you get an itemized accounting of the fees, deductible, and any other details in a written document. This is generally considered to be the standard operating procedure for reputable insurance companies so any that refuse to do this should be stricken from your list of options.
5. Do your research. There are a number of places you can go to look for information about insurance companies such as the ones you are considering working with. You can get a lot of free information from the National Federation of Independent Businesses about different business insurance companies and policies.
6. Work with a licensed agent with a great reputation. When you are looking for life insurance, car insurance, or business insurance, you should enlist the help of a professional who can help you get the right policy with the right company. They can also give you a list of business insurance attorneys. When looking for an agent, you should talk to anyone you know who may have a business insurance policy and get an agent who is familiar with your industry, business, all of the risks inherent in them.
7. Get checkups. Schedule regular, yearly “checkup” on your business insurance policy. As time passes, the needs and risks you have at your business change. The coverage you have this year may not be good for you next year. Having a checkup once every 12 months can show you that you need to switch your policy or even the insurance company that you work with. Your insurance broker can help arrange this.
Business insurance attorneys recommend business owners take some time and do some legwork before buying any policy. They say any time, effort, and money spent getting the right business insurance plan is well spent.
