Assessing the key components is critical to selecting the right coverage.
If you’re a small business owner, there’s no doubt you know the importance of the right coverage for your company. And you’ve probably been approached by various providers vying to get your business by offering you an array of business insurance products.
But while you know you need coverage, choosing the right policy from the provider that will be the best fit can be confusing and daunting. To help you, we’ve put together this guide on what to look for when you receive those insurance quotes and how to select the one that’s ideally suited to your business.
Making comparisons among quotes
Once you’ve made inquiries into business insurance, you’ll start receiving quotes. Your next step will be to go through each one and hone in on the main items you should be comparing. Here’s a breakdown of the key elements of insurance quotes and what to keep in mind:
1. The premium
The premium is the amount that you’ll be paying each month or in whatever increments your provider lays out. Although cost is an important factor, it’s critical to remember that a low cost insurance policy should not be your only criteria when choosing coverage. The adage “you get what you pay for” absolutely applies, so be sure to review how much coverage that premium entitles you to, an offer that is just too good to be true often is just that.
2. What’s included and excluded
This goes back into the adage about pricing. Make sure you understand exactly what is included—and not included—in your coverage. Coverage for things like injuries to you or your employees, damage to your property, liability and others are fairly standard and should be included. All the details of covered events and exclusions should be outlined in the quote and clearly understandable. If you aren’t sure or it’s not listed, be sure to ask before making a decision.
3. Deductibles and limits
Every policy has limits and deductibles that will affect how much you’ll be covered for and how much you’ll have to pay out of pocket before your benefits kick in. Important for obvious reasons, this information should be detailed in the quote and will give you an idea of whether or not the policy will be adequate for your company.
Other things to consider when reviewing business insurance quotes:
1. The future
It’s a good idea to take into consideration where you see your company going in the coming year. Are you planning on hiring more people? Do you see yourself adding a delivery component or new products? If so, be sure to go over how your coverage needs may change and choose a policy that will offer the appropriate amount.
2. Compare your current coverage
If you already have coverage and are looking to add to or change anything within the policy, go over your existing policy and make a list of what aspects of it were weak or of the best value to you. It’s helpful to do this so you can be sure to choose a policy that offers you what your current one did not.
3. Work with a professional
Insurance policy jargon can be confusing and knowing what you need is not always obvious, so if you aren’t sure about what certain items mean or how they relate to your coverage, get in touch with the provider and ask them to clarify everything for you. Doing so will help you make the most informed decision and choose the policy that is going to be best for your company.
No matter what business you’re in, having the right amount of insurance coverage is key to protecting your company from losses of any kind. Be sure to get several quotes before making a selection and if you need guidance on any of the options you’ve been presented, give us a call so we can help.