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When you decide it’s time for your small business to invest in insurance, it can be an overwhelming process. From determining what it is your company needs to finding the best insurance provider, there’s a lot of research that needs to be conducted. Will your business benefit most from business vehicle insurance, errors and omissions insurance, or an umbrella liability policy? While each company has different requirements, there are a few things that are standard: what to avoid. Small business insurance companies can offer a lot, but knowing what to avoid will help your decision making process easier.
While a rate that comes in lower than others may seem like a good quote, make sure you’re looking into why that rate is lower than the rest. A bid that is sufficiently lower than the rest can often mean fewer or less extensive services and rate increases in the future. Some small businesses may think it advantageous to move from one low bid to another, but your insurance choice should be considered a long term investment. The dwelling value and the liability limit on the policy could be less while the deductible is higher. Make sure you understand why the numbers are low.
You might opt for one insurance carrier over another because of pricing, but pay attention to what exemptions and exclusions are being discussed. Make sure the insurance plan covers all your major assets as well as minor ones. For example, if you live in a flood zone, your standard policy probably won’t cover flood insurance. The exclusion of something like this is just one route your provider can take and one you need to consider before signing up for an insurance plan. Look for exclusions that greatly affect your liability and find a policy that aligns with your needs the most.
An insurance provider may suggest additional policies for your business. One potential reason for this could be your business’s location – a high risk-area often means you need additional coverage. A small business insurance provider may offer additional policies, but sometimes these are included in the program you already selected. Make sure you understand your current coverage limits before adding additional policies on. And while pricing may vary when you receive the initial quote, look into what each offers as a standard and what each requires as an add-on.
When you’re looking to buy insurance for your small business, make sure you choose a provider that has excellent customer satisfaction. If you see a plethora of negative reviews online or other small businesses report problems for the provider you’re looking at, take those into consideration. When it comes time to file a claim, customer service is essential so you want a company with a proven track record for customer satisfaction.
At least every few years, shop around. Many individuals and small businesses find they can save money by switching policies or providers. Remember, your insurance carrier is a going for a sale. Although they may be looking out for you and your business, they’re also looking out for themselves. Knowing your coverage and what you can be held liable for is incredibly important when it comes down to your final decision.
Previous entry: The Transition