If you’re just starting out with a new business, you have a lot of decisions to make. You have to fill out forms, get your business set up, start marketing and begin bringing in revenue. One of the important tasks that may get pushed aside or fail to get the proper attention is purchasing business insurance. Here are a few important tips you should follow.
1. Know What You Need and Your Risk
Figure out what kind of coverage you need and how much risk you’re willing to carry. In most cases, a higher deductible which means a higher level of risk for you means a lower premium. Of course, you must balance this benefit with how much you can afford to pay if you should have to file a claim.
2. Consider a Business Owner’s Policy
Designed for small businesses, this policy is a wrap-up of multiple policies into one. It generally provides minimal coverage at a lower rate. If you have a larger company or offer specialized products or services, you may need more specific coverage. You can expect coverage for your property, vehicles, and general liability as well as interruption of your business.
3. Compare Prices
Shop around to see which company offers you the best rates. You may find an insurance company that specializes in coverage for specific industries. Make sure you compare policies to ensure you’re getting the same coverage for the different rates.
4. Work with an Agent
While it’s a good idea to make comparisons online for business insurance, it’s not always the best idea to buy online. When you go through an agent, they can work with you to help you save money and ensure you get the best coverage. Many times, they are familiar with your industry and can help you make decisions that protect your company now and for the future. Look for an agent with a solid reputation and a longstanding business.
5. Re-evaluate Your Coverage Needs
You should reconsider your coverage needs at least once a year, more often if your business is growing rapidly. The coverage you purchase today may not be adequate in a year from now. Outdated policies can cause issues if you have to file a claim. Maybe you no longer have enough coverage for the new warehouse you built or you forgot to add equipment onto your policy. Sit down with your agent and go over your policy and your current needs. This will help ensure you’re getting the best rate and the right amount of coverage as your company grows and changes.
Business insurance is essential for most companies. Take the time to find the right company with the right coverage at the best prices. Work with a knowledgeable agent who understands your business and can offer sound advice on the policy you need. Then, you can focus on building your business, knowing it’s protected from major events and catastrophes that can damage a company and even shut it down.