Every business should be insured, but it is hard to decide on insurance plans and providers. Commercial insurance agents are familiar with a wide range of business needs, and can provide insight into what's best for your company. Here are four tips from insurance agents for small business owners:
Start with a business owner's policy
For affordable, broad-spectrum coverage for your new business, it's best to start with a business owner's policy (BOP). This type of policy combines both property and general liability insurance, and typically covers events that cause suspended operations, property damage or lawsuits. Depending on the type of business you own and the number of employees you have, you may need additional specific types of insurance, but a BOP will at least provide basic protection from common business losses.
Cheaper isn't always better
When you're trying to get a business off the ground, keeping a low budget is often a top priority. For certain expenses, it's smart to go with the least-expensive option. In the case of business insurance, cost shouldn't be the only consideration. Shop around for an insurance provider that's in your price range but that also offers comprehensive coverage and business support services.
Look beyond the price, and make sure an agency is providing a good quote proposal and experience in your state and industry.
You should choose your insurance adviser as you would any other professional. Make sure the agency has buying power, negotiating strength and expertise in your industry, and provides services such as a risk-management department that can help avoid potential claims.
Be prepared for an audit during your first policy period
In general, the cost of an insurance policy is based on a business's annual gross sales. As a startup with no sales history, your policy premium will be based on your estimated annual sales for the first year.
Consider all possibilities for your business's future
Although an accident, disability or illness that could threaten the viability of your business may seem unlikely, it's important to consider what it would mean for your company if these situations were to occur.
Small business owners should consider the ramifications of the loss of revenue and the succession of the business they've work so hard to achieve.
For more information on small business insurance, contact TriState Business Insurance.
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