Every business should be insured, but as a small-business owner the maze of insurance coverages, policies and carriers can be confusing and overwhelming. While it is good to talk with your fellow entrepreneurs, the best place to get insurance information is from an independent insurance agent who specializes in business insurance.
Business insurance agents are familiar with a wide range of business needs, can help you understand the different business insurance coverages and will help you determine which type of business insurance is best for your company.
Here are five things you should know as you begin shopping for small business insurance.
Start with a Basic Business Owner’s Policy
For a new business, a business owner’s policy that combines both property coverage and general liability insurance is often the best initial coverage. Depending on the type of business you are in, and how many employees you have, you may also need additional coverage, but a business owner’s policy is a good starting point and will provide you with protection from the most common business losses. Once you have your basic protection in place, your small business insurance agent will help you determine what other coverages, if any, you may need and when you may need them.
Cheapest Isn’t Always Best
No one wants to pay more for insurance than they need to, but resist the temptation to choose your business insurance coverage based solely upon price. For some coverages, the least expensive option may be adequate, but it is important to shop around for an insurance policy that offers both the coverage you need and the service you will want if you ever need to make a claim. Read every proposal and quote carefully and remember that your agent is there not only to sell you insurance but also to educate you on the different types of insurance and the details of your coverages.
Expect An Audit During Your First Year
The premiums for business insurance policies are generally based on a business’ annual gross sales. If you are a new business, your policy is likely to be based on your estimate of first year sales.
Sometime during your first year or at the end of it, your insurance carrier is likely to request an audit and may adjust your premium either up or down, based on your actual sales.
Choose a Local Business Insurance Agent
Using a local independent agent will allow you to build a strong working relationship with one of your key business providers. An independent agent like Roper Insurance has access to a wide range of insurance companies, giving you more options in both price and coverage. Using a local agent will allow them to get to know you and your business, enabling your agent to give you more accurate and specific advice.
As you start your new business venture, you want an insurance agent who can not only help you with your small business insurance needs, but will also be able to support you as you go. Roper Insurance not only provides all lines of business insurance, but can also help you with a full range of benefits options as your business—and your staff—grows, as well as HR, workplace wellness and workplace safety assistance.
Whether you are just starting out or your business is well-established, the right insurance AND the right insurance agent are critical to your business success. Call or chat with us today to give your business the best advantage.