Tips for Knowing How to Get Business Insurance

Business insurance enhances the continuity of your company and is significant for the protection of your employees. No matter what industry your business operates in, it’s important to view business insurance as an investment rather than an expense. Keep reading to learn tips for getting business insurance.

What Is Business Insurance?

Business insurance provides business owners with protection over their financial assets. It can also protect your intellectual and physical property in instances related to theft, vandalism, lawsuits, employee injury and property damage. The cost of business insurance will depend on several factors, including your carrier and terms of coverage.

What Are the Different Types of Business Insurance?

Fidelity bonds are a type of business insurance that reduce a business owner’s financial loss as a result of employee theft or fraud. A home-based insurance policy protects you against property and liability risks that are common among home-based business owners. For example, say you operate a salon out of your home and a customer visits the salon during the winter and slips on ice in your driveway. Your homeowner’s policy may not cover the claim because the person was visiting you for business-related reasons. A business insurance policy, however, can be customized to provide protection for this type of claim.

The most common types of business insurance include:

  • Product liability
  • Errors and Omissions/Professional liability
  • Home-based business
  • Commercial vehicle
  • Business interruption
  • Property insurance
  • Worker’s compensation
  • Data breach
  • Employment practices liability

What to Look for in Business Insurance

Whether you’re in need of insurance for a food business or an auto mechanic shop, at the heart of any business insurance quote is its limits of liability. After verifying a carrier’s business insurance license, check the limits of liability to see how much can be paid out for a single claim. You’ll also need to check the policy’s aggregate limit, which is how much can be paid out for the life of the policy before renewal.

You’ll also want to review each quote’s deductible. If a policy’s premium is too high, ask the agent providing the quote to increase the deductible as this will bring down the premium. However, keep in mind that a higher deductible means a higher out-of-pocket cost when you file a claim.

How to Know You Have the Right Business Insurance

A business insurance agent can assess your business’ exact needs to ensure you have the right policy. Almost any policy can be customized to meet your needs and preferences. It’s important to reassess your needs each year and customize the policy accordingly.

How to Choose a Business Insurance Carrier

Use the internet to research various business insurance carriers. Make sure the one you choose has top-rated customer reviews for superior customer service. It’s also important to ensure the carrier has a low claim rejection rate. This gives you peace of mind in knowing you’ll likely be covered when filing a claim.

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