There are different things to consider when shopping for insurance, but even more so when shopping for a specific kind of insurance such as business. We recommend that you consider the following before making any major decision:
- Assess your risks
- Educate yourself about a Business Owner’s Policy
- Shop Around
- Find a Reputable, Licensed Agent
- Assess Your Insurance Coverage on an Annual Basis
1. Assess Your Risks
The first insurance agents do is establish the level of risk they’ll accept when issuing policies. This process is called underwriting. Theunderwriter will review your application and determine whether it will provide all or a portion of the coverage being requested.
Next, when they decide that you are a good risk, they will underwrite a policy for you for the coverage. Each policy has a premium and a deductible.
What is a premium? Your premium is the price you pay for insurance each year. This will depend of course on your business location, building type, local fire protection services, and the amount of insurance you carry.
What is a deductible? A deductible is the amount of money you agree to pay upfront when making a claim. Simply put, the lower the deductible you pay, the higher your premium will be… and vice-versa.
So, when you assess your risk and can afford to pay a higher deductible, then you end up saving money on your annual premiums.
2. Educate Yourself About The Business Owner’s Policy
When you’re buying business insurance, you might want to consider a business owners policy.
3. Shop Around
Don’t just pick the first option you come across, shop around.
Did you know that The National Federation of Independent Businesses offers free information for choosing insurance to help you assess your risks and to make sure you’ve insured every aspect of your business?
Here are some things to remember when buying business insurance:
- The extent and costs of coverage vary from company to company.
- When you’re buying business insurance, you might want to talk to an industry specialist that understands the common problems unique to the type of business you are in. Many times specialist brokers can get you the best coverage and the best rates.
4. Find a Reputable, Licensed Agent
Here are a few things to remember before choosing a commercial insurance broker:
- Make sure your broker understands all the risks associated with your business.
- Ask friends and family.
- Talk to your peers and fellow business owners.
- Think about what you would look for in a good lawyer or accountant.
5. Have An Annual Business Insurance Checkup
As your business grows, so do your liabilities. No one wants to be caught unprepared when a disaster strikes. Have you purchased or replaced equipment or expanded operations this past year? If so, contact your insurance broker to discuss changes in your business and how they affect your coverage.
If you are currently shopping for business insurance get in touch with your UniAmerica Insurance agent today or give us a call at 1-310-835-3373.