Each year, more than 650,000 small businesses open their doors to clients for the first time. Though getting a company up and running is exciting, there is a lot that goes on behind the scenes to make that grand opening happen.
Arguably one of the most important things any business owner can do before opening their doors is to find a reliable business insurance agency to help protect their company.
If you are like most new business owners, figuring out where to start can seem like a bit of a mystery. It doesn’t have to be this way when it comes to insurance policies and coverage.
Here is what you need to do to find the best business insurance provider for your company.
Think About the Coverage You Need
No matter what industry you are in, there are a few standard business insurance types that you will need to have before you can open your doors. These include property insurance, liability coverage, and workers’ compensation coverage if you have employees.
However, those are just the tip of the iceberg. There are other coverage options that can help you further protect your business. You just need to think about the types of risks your company faces each day.
For example, if you have commercial vehicles that you use for work, you will need to buy commercial auto insurance. If you are worried about disasters delaying your company’s workflow, business interruption insurance coverage will protect against lost income.
Once you have a good idea of the types of coverage you need, look for an insurance agency that can provide that coverage and more. If the company doesn’t offer a specific type of insurance that you deem necessary, keep looking.
Set a Firm Budget
As a business owner, you know what you can and can’t afford to spend each month. You are in charge of your budget and need to stick to that budget when choosing an insurance plan.
Be firm with insurers you communicate with. Set a maximum amount that you know you can pay to cover all of your insurance needs and stick to that number.
When speaking with different providers, let them know your budget when getting quotes. This will help their agents find the best coverage for your company without giving you options that are too expensive.
Look for Providers Familiar With Your Industry
Every business is unique, but some industries face different challenges. Choosing an insurance provider that is familiar with your industry will help you make sure that you are covered for every possible risk.
Take your time to research the agencies you’re considering. Make sure they have worked with businesses in your industry in the past. If they haven’t, proceed with caution.
The last thing you want to do is partner with an agency that doesn’t understand the exact coverage options that your business needs.
If you are not sure where to start, check out these tips from Farmer Brown Insurance. This way, you will know that you are working with the best possible agency for your growing business.
Get Quotes From Different Companies
Though it is tempting to buy insurance from the first business insurance agency that you find, it is not in your best interest. You could end up overpaying for coverage or get insurance that is inadequate for your needs.
Instead, take your time and shop around.
Get quotes from at least three different insurance providers and review those quotes in detail. Look at the prices they will charge, the deductibles you will pay, and the coverage limits for each type of insurance you need.
You will want to choose the provider that offers you the most comprehensive coverage at a price that fits your budget.
Keep in mind that it is also worth asking for discounts on your insurance. Some companies will reduce your total premium payment if you buy more than one type of insurance through their agency, but you have to ask.
Research the Reputations of Each Business Insurance Agency
Just because an insurance agency offers what seems like great coverage doesn’t mean they are worth partnering with. You need to do your due diligence and research the reputations of each company you are considering.
Read up on reviews and see what their clients have to say. If most of their customers seem satisfied with their insurance and the company’s services, you should be in good shape. However, if most of the reviews mention common issues and pain points, keep looking.
The last thing you want to do is buy insurance from a company that makes filing a claim and getting paid difficult.
Pay Attention to Customer Service Quality
Filing a business insurance claim is stressful. Your insurance provider needs to be able to walk you through the process and help you reestablish calm within your business. This means the provider you choose should offer stellar customer service.
When shopping for insurance quotes, pay attention to the way the agents interact with you.
Do they take the time to answer your questions in detail? Are they responsive and willing to work with you to find the best coverage for your business? If so, they are worth working with.
However, if the agents are dismissive or unhelpful, keep looking. Remember, they are your main point of contact when you file a claim. If you are not comfortable working with them while you are shopping, you won’t be comfortable working with them when you need to use your insurance.
Now You’re Ready to Find the Best Insurance for Your Business
Choosing an insurance provider is one of the most important things you can do for your business’s financial future. However, finding the best business insurance agency can feel stressful and overwhelming when you also have a business to run. Use this guide to help you find a provider you can trust and one that can grow with your business.
Just remember to take your time and shop around. The more insurance agencies you speak with, the better prepared you’ll be to make a final decision and find the best coverage possible.
Looking for more tips and tricks to help you manage your business’s finances more effectively? Check out our latest posts on insurance and risk management today in the Finance section of the Everything Entrepreneur Blog.
