Just like buying a house or car, shopping for business insurance is an important purchase too. Comparing prices, features and quality become essential. That said, it is not easy to evaluate business risks, determine insurance needs and weigh options. We recommend the following steps for best results.
- Evaluate Business Risks
The first step is to assess your business risks. Key considerations for this assessment include understanding the nature of your business, property (including inventory and equipment) and employees. This information will help an insurance provider recommend the right coverage.
- Compare Rates
As it is always good to look around before you shop for your new favorite shoes, it is recommended to get business insurance quotes from at least three different companies. To ensure an ‘apples to apples’ comparison, ensure that the identified policies offer similar coverage.
- Evaluate Insurers, Policies and Services
When purchasing business insurance, price is just one consideration. You’ll also want to make sure a potential insurer has a good reputation and is trustworthy. In addition, review policies in depth to understand key differences and exemptions.Also, don’t forget to consider the level of service you will receive from your insurer.
- Review Your Risks and Insurance Policies Annually
It is important to analyze and adjust your coverage on an annual basis. If your business is expanding, you may have new or greater liabilities that require greater insurance coverage. Talk to your insurance provider before each year’s renewal to determine the adjustments to your business insurance policies.
- Lower Your Premiums
Lastly, there are several ways to reduce insurance costs. For example, choosing a higher deductible can lower your premiums considerably, as can setting up a risk management/loss reduction program. Insurers will often lower your rates if you introduce a program that will minimize losses from fire, theft and employee and customer injuries.
Once you’ve weighed these options, you’re ready to make your purchase —and with your business insurance purchased, you can operate your company with greater peace of mind!