It is important to shop around when in need of business liability insurance and other types of coverage for your business. Always keep in mind that prices vary—sometimes by a substantial amount—from company to company for identical coverage. · In many cases, you can choose among companies or brokers who specialize in your type of business. Call several until you feel comfortable with their level of knowledge so that you can become familiar with the types of business liability insurance and other coverage they provide.
Once you’ve decided with whom you’d like to do business, make sure the insurance carriers are in good shape financially. Check the financial health of insurers with rating companies such as A.M. Best and Standard & Poor’s, and consult consumer magazines such as Consumer Reports. Remember that when you buy business liability insurance and other types of coverage for your business from an insurer, you are relying on that company to be there for you.
Deductibles Lower Your Premium Costs
- Deductibles represent the amount of money the carrier will deduct from any claim before they will pay you. The higher the deductible you choose, the less you will pay for the policy. Be sure, though, that you have sufficient funds on hand to cover that higher deductible if you need to file a claim.
- If you are a small business owners, you can often insure your business risk by purchasing a package policy, such as a Business Owners Policy (BOP) instead of individual coverage. A package policy provides appropriate standard coverage and limits of liability for smaller businesses.
Your insurance broker can provide invaluable advice to help protect your business from unexpected disasters. Be sure to keep him or her informed about any major changes in your business—major purchases, expansions, or changes in the nature of your operation. In addition, ask about disaster planning and reducing risks such as fire or work-related accidents.
Always remember, if you don’t talk to your broker in fear that your premium will rise, you may be overlooking the purpose of your insurance project all together. You may be better off taking your broker’s advice and raising the deductible(s) in order to reduce the premium, should his/her advice generate a premium out of your budget. It is better to be faced with a deductible out of budget, rather than going uninsured and exposing your business to risk you may not be able to afford to self insure.
Having the right business liability insurance and additional coverage, plus a well-crafted disaster plan, can save you money in the long run. It might even save your business from going under. That’s why it’s more than worth the effort to do some research before you sign the contract.
Protect your business by selling your risk to a reputable carrier and a broker who will service your business as you deserve. A conscientious broker will also shop the risk among carriers in the market on your behalf.