September 20th, 2016
Shopping for business insurance is an exhaustive process. There are a lot of sites out there that promise you the best business insurance quotes the market has to offer, but after doing a little digging, you’re not finding that these promises hold up. Sure, they offer you a low price on the first page, but once you click to the next, the price seems to have risen for no explicable reason.
This isn’t the case at CoverHound. We detail your packages to fit you and your needs with an insurance provider specializing in the business insurance coverage you want. For the coverage that best suits your business, here are some dos and don’ts of business insurance shopping.
Smart Choices in Your Business Insurance Investment (The Dos)
According to Santa Clara University’s My Own Business Institute, the purpose of business insurance is to “transfer a risk that you can afford to cover a risk you cannot afford.” This means paying a monthly insurance premium for an unforeseen event that would have hurt your financial stability. In essence, you’re paying for financial protection.
As a first-time business owner you want to make sure that you’re covering all your bases. Before you choose an insurance plan, follow these steps!
Know what you need. Not all businesses require the same amount of insurance or the same insurance types. For example, a beginning law firm isn’t going to need the same coverage as a construction company.
Shop around. You won’t just want the most affordable insurance package; you’ll also want an experienced agent. FindLaw recommends working with an insurance agent who specializes in insurance coverage for your type of business.
Invest in a business owners policy (BOP). This type of insurance policy combines general liability and property insurance. A coverage type like this protects both you and your employees from lawsuits from unhappy clients/customers to damage to business property.
Get more insurance as your business grows. Families suggests that you should increase your insurance limits as your small business grows. This will help protect your growing clientele, employees and your company’s finances.
Protecting Your Interests: What Not to Do with Your Insurance Investment (The Don’t List)
We all want to save money. We’ve been taught that being a responsible adult requires that we pay our bills and have money in the bank. Managing our own business also requires that we invest in a good insurance plan. To make sure we do, here are some things not to do.
Don’t buy a general package. If your business insurance plan is not detailed to the specifics of your business, you risk losing it all. Make sure your liability coverage protects the majority or entirety of your business finances.
Don’t underinsure to save money. FindLaw found that business owners who underinsured their company ended up having to cover 80 percent of the loss from their own pockets.
Don’t self-insure workers’ compensation. All workers’ compensation payments will come directly from the pockets of the business owner. If you have even more than one employee out on workers’ comp, you’re risking financial collapse—especially with a new business.
Finding a policy that protects you, your business and your employees is possible with CoverHound. Click here for rates or give us a call at 800-460-6467!