Choosing a business insurance policy is an essential step that is often skimmed past by many company owners who simply opt for the first policy they can find from a major provider. However, by conducting a thorough comparison, you could significantly reduce your monthly premium or obtain more optimal coverage that will protect you against every possible scenario. The most common types of business insurance include commercial general liability, umbrella, workers’ compensation, and business interruption insurance. Fortunately, the process for comparing all of these insurance types is very similar. With that said, follow these steps to find the ideal business insurance policy for your needs:
1. Use a Quote Comparison Platform
Instead of manually examining the offers of each major provider by visiting their website or calling them separately, you can centralize and streamline the process by retrieving multiple quotes via the use of a comprehensive insurance comparison platform like Insurance Geek. This will let you specify the features you’re looking for in a business insurance policy and receive several custom quotes from different providers all at once.
2. Secure Adequate Coverage
Since the purpose of business insurance is to provide financial protection for your company, it doesn’t make sense to get a policy that won’t pay for everything your company owns. The average business has between $10,000 - $100,000 worth of property. Calculate how much you would need to replace all of your company's belongings and get a policy that can cover that amount plus at least $10,000 of leeway to account for new assets that you’ll buy.
3. Consider Liability Coverage
Business insurance doesn’t just cover your company’s property, it also provides coverage in the event that someone else injured or has their property damaged while at your place of business. Most business insurance providers offer liability limits ranging from about $30,000 to $500,000 or more.
4. Consider Bundling with Another Plan Type
Bundling your business insurance policy with other types of insurance can save you 10 to 20 percent on your premium and monthly cost. Most insurance providers will offer this option, so keep that in mind if you’re looking for extra ways to reduce the expense.
5. Choose a Higher Deductible and Set it Aside
Opting for a higher deductible might seem like a bad decision because you’ll have to pay more upfront in the event that you need to file a claim. Choosing a higher deductible will dramatically lower your monthly premium, just make sure you have that money set aside so that you’ll be able to pay it if the need for a claim arises. Generally, business insurance and commercial property insurance deductibles range from $200 to $5000.
Not Getting Business Insurance is a Bad Idea
Ultimately, not having a business insurance policy is downright nonsensical when you consider how cheap this kind of insurance is and how much protection it provides. You can usually get a business insurance policy for about $15 to $100 per month, so there’s really no reason to forego this expense.
