Tips for Choosing the Right Business Insurance Coverage
Jan 30, 2020
Having business insurance - no matter the size or stage of your company - is crucial in protecting assets, employees and more during a claim or loss. This is especially true with small and medium businesses since they are younger and have less means to bounce back from a loss - check out our "Why Business Insurance Matters for Companies of All Sizes" infographic. Having no insurance or the incorrect coverage as a small business could mean shutting down entirely. But choosing business insurance and the right coverage isn't necessarily as straightforward as choosing the first option online. Here are some tips to keep in mind during the process of getting business insurance:
What to Know When Choosing Business Insurance
1. Shop around and speak with multiple insurance providers.
I would suggest consulting with a few different insurance agents before deciding which types of policies to purchase. The benefits and costs will vary between providers, so you should explore multiple options to find the best fit for your needs. - Matthew Podolsky, Florida Law Advisers P.A.
2. Choose a plan that will scale with you.
When you're first able to get insurance for your employees, it feels good. When you're shopping for company insurance, think about whether the prices will work as your business scales. Some insurance agencies have individual employee costs that make scaling with their company difficult. Planning for growth is helpful in all areas of business, and insurance research is no different. - John Turner, SeedProd LLC
3. Understand how your insurance agency calculates its quotes.
Of course, you want to shop around for different insurance companies and get the best quote. So, you need to find out how the insurance company calculates its quotes. They should be transparent about this process and what they consider. For instance, do they take into account the size of your company and your industry? Knowing how they assess your business will allow you to be more informed. - Thomas Griffin, OptinMonster
4. Look at the total per-employee cost of your policy.
When you're making a deal with a new insurance company, always ask what the final cost of the program will come out to per employee. There's a chance you could get blindsided and be forced to pay an additional premium, depending on the situation of the employee. Learning about the cost changes over time can help you make smarter decisions and choose the right insurance company for your business. - Chris Christoff, MonsterInsights
5. Don't make assumptions about what's covered and what's not.
Every business is different and you should choose insurance based on your location, the type of business you own and other factors. If you have a basic plan such as property insurance, don't assume that this will cover other possible risks, such as natural disasters. Consider the types of risks your region is subject to, such as floods, fires or earthquakes, and make sure you're covered for these. - Kalin Kassabov, ProTexting
6. Look beyond general liability insurance to cover all your risks.
It's important that you read the insurance contracts in detail to find out what is covered and what's not. Usually, small businesses will start out with the general liability insurance and do their own risk analysis to find out if they need to get any additional insurance. - Syed Balkhi, WPBeginner
7. Know your specific industry's business insurance obligations.
It's a must to understand what your insurance obligations are as a small business. If you neglect any area, it could mean serious risk for your company. It's also important to understand that not all small businesses need to purchase insurance, so know what you're getting into. - Stephanie Wells, Formidable Forms
8. Read your insurance policy carefully and look for any gaps.
Make sure you read your business insurance policy before making a final decision. Each carrier has its own policy with different requirements, and reading it front to back ensures you don't encounter any gaps that could hurt you in the future. - Jared Atchison, WPForms
9. Splurge on the maximum coverage.
As Murphy's Law states, "Anything that can go wrong will go wrong." Enlist an expert to identify all relevant insurance areas and buy the broadest coverage with the highest limits you can afford. - Mahesh Chaddah, Reservations.com
10. Narrow down your options before searching.
When you're shopping around for insurance, you may feel like you need to find every possible option out there before you make a decision. However, this only serves to frustrate you since remembering and comparing a dozen policies can be very hard to do. Ask for recommendations from peers and try to restrict your options. You'll make a good decision in less time. - Blair Williams, MemberPress
Own a startup? Check out the insurance essentials you need for your startup.
We know choosing the right business insurance can feel overwhelming between having to shop around and researching additional coverage. Foxquilt can do the work for you. We work with Canada's leading insurance companies so we can shop around and find multiple quotes for you - giving you better buying power. Our modern insurance model also allows you to join up with other business owners and entrepreneurs to access group insurance savings. Our insurance experts will make sure you have the correct additional coverages to fit your specific needs and guide you through the whole process. Get your quote today
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