Shopping for insurance can be like trying to buy a new dress for your wife…
- The right color.
- Will it fit?
- Is it unique?
Sometimes it can be easier just to wrap a gift card and let her find the dress herself.
But you don’t have that option with business insurance. It is imperative that you find the right business insurance that will fit your needs. So, I am going to give you 9 tips.
Getting Business Insurance Tip #1: Have The Information You Will Need To Apply
Applying for business insurance can turn into a long, tedious and frustrating process if you do not have the proper information ready. I suggest you have:
- The basics – These will include locations (addresses), contact info, name, legal entity and the industry.
- What coverage you think you need – An attorney can help you determine this and the insurance broker may also add recommendations.
- The revenues your business gets.
- Business practices
- Websites and social media
- Any past insurance coverage
Getting Business Insurance Tip #2: Make A List Of Risks
The whole idea of having insurance is to cover various risks you have with your business. I suggest taking some time and listing out all the risks you can think of:
- General liability
- Commercial vehicle
An independent insurance agent can also help with this.
Getting Business Insurance Tip #3: Do Your Research And Shop Around
It is never wise to just go with the first quote. You may be able to land a better deal.
- Company reputation
Getting Business Insurance Tip #4: Do An Annual Insurance Audit
In 1 year’s time, business can change. It is always smart to do a yearly audit of your current business insurance coverage. You may need to add or even subtract. You may want to shop around to see if you can get a better deal.
You should plan a yearly business insurance audit religiously.
Getting Business Insurance Tip #5: Join Industry Organizations
Many industry organizations are affiliated with insurance companies and can get you cost efficient liability business insurance or other coverage. It is like a group coverage for business and can save you a lot of money.
Getting Business Insurance Tip #6: Don’t Leave Out Business Interruption
So many entrepreneurs get loaded with coverage but neglect business interruption coverage. If a fire or tornado destroys part of your business and you cannot sell, you are out revenues until you have rebuilt.
With business interruption insurance, you are covered until you are up and running again.
Getting Business Insurance Tip #7: Yes, Even A Home Business Needs Insurance
Let’s say you have a network marketing business or you make crafts and sell them on an online store.
Your homeowner policy will not normally cover stock or business equipment. It is wise to talk with your insurance agent to get a business insurance policy that will cover any loss to your home business profits or materials.
Getting Business Insurance Tip #8: Security Gets Discounts
By having layers of security, insurance companies will give discounts.
- Security cameras
Getting Business Insurance Tip #9: Understand The Deductibles
I have watched businesses sink because the deductible was too high on damages for the entrepreneur. Sure, maybe you have a million dollar policy on an accidental death, but it happens and you didn’t realize the deductible was $300,000 that you must pay before the insurance pays.
Always know the deductibles before choosing a policy.
No matter what, do not put off getting business insurance… Remember that Murphy’s Law is always in affect.
One last tidbit, your business insurance is a deduction on your taxes.
To keep track of tax deductions and your business budget, we developed the Expense Tracker to save time and money. You can try the Expense Tracker here.
If you have any questions, feel free to ask below.
Thank you and have a great day.