Posted on May 16, 2014
When it comes to obtaining competitive business insurance quotes, business owners need to take time to understand the different types of coverage available so they will have more insight into which commercial insurance is appropriate for their situation. Certain insurance coverages like workers compensation and commercial auto (if vehicles are used for business) are required in most states while other policies like general property or liability are optional.
Even when policies are not required by law, it still makes sense to review the coverage to better determine if it is necessary to protecting the business. One of the first steps in shopping for commercial insurance is to decide what risks or exposure the business faces. For example, if vehicles are not used for business operations, then commercial auto coverage is not necessary.
The next step in the process is to find a professional insurance broker to aid in evaluating coverage and obtaining quotes from insurance companies for the different insurance lines that would be appropriate for protecting the business assets, employees and customers. Many brokers are specialized in various types of coverage for different industries so they can assist with the unique needs of each individual business owner.
During the process of insurance planning, it is also important to have business paperwork in order. By providing complete information to the broker and insurance company, both will understand the operations more easily, and this, in turn, can result in more favorable rates. The most important rule is to be completely honest with the insurance professional so that the insurer has all the information needed to accurately quote premiums for the policies.
Also part of the process is to ensure that the business has safety procedures and employee training in place. This will first keep claims low and can also aid in securing the best premium rates. Safety equipment such as fire sprinklers, extinguishers and security alarms are also beneficial so tell the broker or insurer when this equipment is installed at all business locations.
Be sure to obtain a minimum of three quotes from different commercial insurance carriers and read over the coverage terms carefully. Making a decision based solely on price can result in inappropriate insurance amounts or even a financially unstable company. Brokers work primarily on behalf of business owners so they can provide the best advice on the pros and cons of each insurance policy being reviewed.