Business insurance is a necessity in our litigious society. But how do you know how much insurance you need, and what kind you should get? The Small Business Administration has five suggestions that could help you assess what types of insurance are best for your business, and how to secure coverage to provide your assets.
- Assess Your Risks. Risk is something the insurance company will determine when you apply for insurance coverage. The company will review your application and decide whether it will provide some or all of the coverage you request. Insurance policies carry a premium (the price you pay for the insurance) and a deductible (the amount of money you agree to pay when making a claim). Premiums and deductibles can vary widely among insurance companies, and depend on a number of risk factors, including your business location, building type, local fire protection services, and the amount of insurance you purchase. Generally, the higher deductible you agree to pay, the lower your premium will be. However, when you agree to take on a high deductible you are taking on some financial risk. It’s important to understand your own risks before you begin talking with insurance companies.
- Shop Around. The kind of coverage you can get and its cost will also vary from company to company. Some brokers focus on insuring one type of business, while others who are generalists have clients with many different kinds of businesses. Ask the brokers you speak with if they insure people in your line of business. Often specialist brokers can get you the best coverage and the best rates.
- Consider a Business Owner’s Policy. You probably know that you can buy the different insurance policies your business needs separately, or bundled together in a Business Owner’s Policy (BOP). If you buy separate policies from different insurance companies you might end up paying higher premiums. A business owner’s policy combines coverage options into a standard package, and sold at a premium that is less than if each type of coverage were purchased separately. A bundled business owner’s policy could include property, commercial general liability insurance covering your property, vehicles, business interruption and other types of coverage common to most types of businesses. These policies can simplify the insurance buying process and can save you money. However, make sure you understand the kind of coverage in any business owner’s policy you are buying. Not every type of insurance is included in a business owner’s policy. If your business has unique risks, you may require specific coverage.
- Find a Reputable, Licensed Insurance Broker. Commercial insurance brokers can help you find policies that match your business needs. Make sure your broker understands all the risks associated with your business. Finding a good insurance agent is as important as finding a good lawyer or accountant. You should always look for one that has a license. Many states regulate the insurance industry and license insurance brokers. California provides a directory of licensed agents; it’s a good idea to check this before you decide to do business with a broker.
- Assess Your Insurance Coverage Every Year. This is important, especially if your business is growing. If something goes wrong, you don’t get caught without enough insurance. If you have purchased or replaced equipment or expanded operations, you should contact your insurance broker to discuss changes in your business and how they affect your coverage.
Business owners have used and trusted Peter Green Insurance Agency to recommend them on business insurance matters for more than 10 years. Not all policies are the same. With our guidance and process to search multiple insurance companies for policies, you will be able select one that meets your insurance and budget requirements.
Peter Green Insurance Agency can help protect you and your company assets. Give us a call you’ll be pleased with the results. Getting covered for business insurance can take some time, get started today, call 888.725.7776 or 714.258.2800.