Quality options in commercial insurance
It’s important to shop around when you need commercial liability insurance and other types of coverage for your business. Always keep in mind that prices vary, sometimes by a considerable amount, from company to company for identical coverage. · In many cases, you can choose from companies or brokers that specialize in your type of business. Call several until you are comfortable with their level of knowledge so that you can familiarize yourself with the types of commercial liability insurance and other coverages they provide.
Once you’ve decided who you’d like to do business with, make sure the insurance companies are in good financial shape. Check the financial health of insurers with rating companies like AM Best and Standard & Poor’s, and check out consumer magazines like Consumer Reports. Remember that when you buy commercial liability insurance and other types of coverage for your business from an insurer, you trust that company to be there for you.
Deductible Lower your premium costs
- Deductibles represent the amount of money the insurance company will deduct from any claim before paying you. The higher the deductible you choose, the less you’ll pay for the policy. However, make sure you have enough funds available to cover that higher deductible if you need to file a claim.
- If you are a small business owner, you can often insure your business risk by purchasing a package policy, such as a Business Owner’s Policy (BOP) instead of individual coverage. A package policy provides adequate standard coverage and liability limits for smaller businesses.
Your insurance broker can provide you with invaluable advice. to help protect your business from unexpected disasters. Be sure to keep him informed of any major changes in your business: major purchases, expansions, or changes in the nature of your operation. Also, ask about disaster planning and risk reduction such as fire or workplace accidents.
Always remember, if you don’t talk to your broker for fear that your premium will go up, you may be missing the point of your insurance project entirely. It is best to take your broker’s advice and increase your deductibles to lower the premium, in case his advice creates a premium that is out of your budget. It’s better to face an out-of-budget deductible, rather than go uninsured and expose your business to risk that you may not be able to afford to self-insure.
Having the right commercial liability insurance and additional coverage, plus a well-crafted disaster plan, can save you money in the long run. It could even save your business from bankruptcy. That’s why it’s worth the effort to do a little research before signing the contract.
Protect your business by selling your risk to a trusted insurance company and broker who will take care of your business the way it deserves. A conscientious broker will also compare risk between traders in the market on your behalf.
