First time buying business insurance? Here’s the basics:
First, when beginning to look for business insurance, you need to remember it is different than your personal insurance you have now. You need to take some time and look at the different types of coverage that is available to your business. These types include liability insurance, property insurance, casualty insurance, and commercial vehicle insurance.
You don’t need to be an expert on business insurance, but you need to understand that property insurance protects the location and contents, while liability protects against a claim against you, your employees, and the business.
Understanding what risks your particular business may be exposed to and what the future may look like as your business grows is very important. If your business has an industry association, it is a great starting point. In fact, don’t be afraid to call around and speak to members to see what they have in place and why. Your state department of insurance can be a great resource to you as well.
Have a business plan and detailed description in place you can review with a commercial insurance agent when you begin to look for the insurance. The more information you can provide the better coverage you can put into place. Interviewing and choosing your insurance professional will be much easier and rewarding by doing this exercise.
It is also easier for your insurance professional to understand your business and the vision you have to make sure you cover as much exposure as possible. Don’t be afraid to ask for commitments from your insurance professional such as 24 hour turn around on phone calls. Get a standard billing date agreed on and make sure it’s the same every month.
Once you settle on the insurance package, don’t file it and forget it. It is important to review it often and make you keep adequate coverage as your business grows. Make your commercial insurance professional a trusted advisor and resource.
Get together at least at least annually and do a complete review either in person or on the phone. Your commercial insurance isn’t buy once and done, it must grow right along with your business.