How Do I Get Business Insurance?

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Whether your company operates solely online, only through a brick-and-mortar store, or somewhere in between, having business insurance is a must. It gives you protection against a variety of financially devastating situations, making challenges easier to navigate. If you’re one of the 33.2 million small businesses operating in the U.S., here’s a look at how you can get the right business insurance policy for your company.

Evaluate Risks

Before you start looking at policies, you need to conduct a risk analysis. That process involves identifying the various risks present and estimating the impact of each incident if it occurred. Essentially, you want to determine what could go wrong and what happens to your company if it does. By doing so, you’ll have a better idea of the types of business insurance you’ll need.

Additionally, spend some time reviewing local laws regarding required business insurance policies. While some business insurance is optional, specific policies are legally mandated in certain situations. As a result, it’s critical to know if any of the legal requirements are applicable to your company, ensuring you stay on the right side of the law.

Research and Choose Types

Once you understand your risks, you can identify the types of business insurance that provide the needed coverage. In many cases, general liability and commercial property insurance policies are excellent places to start, as they protect you from various claims a third party may make and your equipment, materials, inventory, and other physical assets from loss or damage.

If your company is focused on professional services, professional liability insurance is essential and may be required by law. Product liability policies are a better fit if your company manufactures goods.

For company-owned vehicles, commercial vehicle insurance is often mandatory. You might want to explore business interruption insurance if disasters or damage could cause temporary closures.

There are other types of business insurance, as well. Since that’s the case, consider your needs and see if there’s a policy that helps you mitigate risk, as it’s potentially worth adding.

Get Quotes

Once you know the types of business insurance policies you’ll need, it’s time for quotes. When possible, use matching parameters, such as requesting the exact same deductible, coverage maximums, and more, from each provider. By doing so, it’s easier to compare quotes. You have several ways to gather the quotes you need quickly. Here’s how to use each strategy.

Using a Broker

Speaking with an insurance broker is beneficial, especially if you’re new to the world of business insurance. Along with tapping the broker’s expertise when it comes to identifying the policies you’ll need, they can get quotes from multiple carriers. Additionally, they’ll assist with comparing the options, allowing you to quickly see the pros and cons of each insurance policy.

Using a Marketplace

An insurance marketplace also lets you get quotes from multiple insurers from a single source. You simply provide basic information about yourself and your company. Once you’ve done that, you’ll typically receive at least a handful of quotes that you can evaluate right away.

Often, the quotes are returned almost instantly, making this the fastest option. Just make sure you’re ready to dig into the details of the policies yourself, ensuring you can identify insurers that are offering the best value.