Business insurance safeguards your company from serious financial strain but finding the right plan can be confusing as there’s so much to choose from.
If you’re looking for some tips to help guide you before purchasing business insurance, keep reading. Below you’ll find some interesting business insurance hacks to ponder.
1. Carefully Check Competitors
Most people look around before purchasing insurance, but it tends to be a general overview. Rather than glancing quickly at different options, take the time to understand the costs, benefits, and fees truly. Just because one sounds incredible doesn’t mean that there aren’t catches.
One of the top ways to find different agencies is to do an online search. Here, you’ll find a plethora of options. Scan each site carefully and take notes of critical information, like policy costs and deadlines. Other essential aspects include:
- The agency’s history
- Customer reviews
- How vast their coverages are
You can then use these notes to compare them to determine who is best.
2. Find an Agent You’re Comfortable With
Insurance agents can sometimes come across as impersonal or fake, especially since their commission is based on how much they sell.
It’s important to search for an agent that makes you feel understood and doesn’t act like a pushy salesperson. You’ll usually know when you’ve met a good agent as you’ll feel comfortable chatting with them and feel that they have your best interest in mind.
3. Use Online Quote Generators
If the insurance agency you’re interested in has an online quote option, use it. After typing in certain information (like the industry you’re in, how many employees you have, and your claims history) you’ll get an instant average price.
While you can’t talk one-on-one with a representative, online quotes are a useful way to get a quick idea of payment requirements. If you still have questions, you can then contact an insurance agent and talk about the quote provided.
4. Read the Fine Lines
Some insurance agencies hide key details in their exhaustive fine print policies. While reading through them might be a pain, it’s important to do so, so you understand what you’re purchasing. Otherwise, you might pay paper payments or extra commissions to an agent just to ask a question.
Apart from this, inspect the exceptions. These indicate certain circumstances that the policy won’t cover. For instance, while you might have purchased insurance to cover your equipment, the policy might exclude certain tools that you think are protected under it.
If you don’t have time to do this or want to double-check things, consider hiring a lawyer. They’ll read through the policy to tell you exactly what to expect and inform you of things that might be of concern. Many times, they’ll highlight specific sections so you can refer back to them. Your lawyer will also likely explain critical conjunctions that could have a meaning different from what you expect. For example, “or” means exclusive while “and” means everything.
5. Look at Your Options
While you can buy umbrella coverage, sometimes it’s beneficial to purchase single plans. For example, suppose you’re a small business on a budget but need to cover your employees. In that case, you can buy workers’ compensation rather than a big package that covers other areas you’re not necessarily concerned about.
Besides workers’ compensation, other business insurance types to research include:
- General liability – vast coverage that protects your business from injury and property damages. You can learn more here about it.
- Commercial auto – covers any vehicles your business uses that might be damaged or in an accident.
- Errors and omissions – protects you from business oversights, like making a wrong estimate.
- Professional liability – this defends you from accusations of negligence from your customers.
- Tools and equipment – provides financial aid for damaged or stolen business equipment.
While multiple coverages are often beneficial, it could be better to purchase certain coverages if you’re on a budget slowly.
If you’re not sure which coverage is right for you, write a list of your business’s most substantial risks, like data breaches or injuries. You can then use this to guide you to the right plan.
6. Ask Questions
Ask an agent if you’re confused about something or want further information about a policy. It’s ideal to ask even the most basic business insurance questions, so you know exactly what to expect. Inquiring could even lead to you learning about other options and price reductions.
Some questions to ask include:
- What is the best coverage for my industry?
- What aspects doesn’t a certain policy cover?
- How do I submit claims?
Business insurance is a great way to protect your company, but it can be daunting to figure out the right option. With these tips, you can determine the right package and agency for your needs.