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Five Tips for Buying Business Insurance

June 26, 2012 By

The US Small Business Administration offers some tips for buying insurance. They are sage words so we will repeat them here.

Insurance coverage1. Assess Your Risks. Insurance companies determine the level of risk they’ll accept when issuing policies. This process is called underwriting. The insurance company reviews your application and determines whether it will provide all or a portion of the coverage being requested. Each underwritten policy carries a premium and a deductible. A premium is the price you pay for insurance. Premiums vary widely among insurance companies, and depend on a number of risk factors, including your business location, building type, local fire protection services, and the amount of insurance you purchase. A deductible is the amount of money you agree to pay when making a claim. Generally, the higher deductible you agree to pay, the lower your premium will be. However, when you agree to take on a high deductible you are taking on some financial risk. So, it’s important to assess your own risks before you go shopping.

2. Shop Around. The National Federation of Independent Businesses provides information for choosing insurance to help you assess your risks and to make sure you’ve insured every aspect of your business. The extent and costs of coverage vary from company to company. Some brokers specialize in insuring specific types of business, while others can connect you with policies specific to your business activities. For example, if you operate a tow truck service, you’ll want to find an agent that can help find policies that specifically cover automotive service businesses. Often specialist brokers can get you the best coverage and the best rates.

3. Consider a Business Owner’s Policy. Insurance can be purchased separately or in a package called a business owners’ policy (BOP). Purchasing separate policies from different insurers can result in higher total premiums. A BOP combines typical coverage options into a standard package, and is offered at a premium that is less than if each type of coverage was purchased separately. Typically, BOPs consist of covering property, general liability, vehicles, business interruption and other types of coverage common to most types of businesses. BOPs simplify the insurance buying process and can save you money. However, make sure you understand the extent of coverage in any BOP you are considering. Not every type of insurance is included in a BOP. If your business has unique risks, you may require additional coverage.

4. Find a Reputable, Licensed Agent. Commercial insurance brokers can help you find policies that match your business needs. Brokers receive commissions from insurance companies when they sell policies, so it’s important you find a broker that is reputable and is interested in your needs as much as his own. Make sure your broker understands all the risks associated with your business.

Finding a good insurance agent is as important as finding a good lawyer or accountant. You should always look for one that has a license. State governments regulate the insurance industry and license insurance brokers. Many states provide a directory of licensed agents.

5. Assess Your Insurance Coverage on an Annual Basis. As your business grows, so do your liabilities. You don’t want to be caught underinsured should disaster strike. If you have purchased or replaced equipment or expanded operations, you should contact your insurance broker to discuss changes in your business and how they affect your coverage.

Statewide Insurance is your reputable agent. We are here to help you assess what coverage you need to give you the best protection. We operate in many fields and are licensed to provide coverage in Texas, California, Oregon, Minnesota, Virginia and Nevada. We are here for you and your business.

Call Statewide Insurance Brokers at (888) 258-0272 today for fast, free quotes on your insurance needs.

Minnesota Contractor Insurance

April 1, 2011 By

Do the Smart Thing

Minnesota contractors insuranceFor any Minnesota contractor insurance should be as important as their tool belt. Let’s face it. Accidents will happen. From Minneapolis to Duluth, the most careful person can still make a mistake and end up being liable for an accident. That is when it is very important to have insurance there to back you up.

It is also important to make sure there is coverage for medical costs that might happen. Without the proper insurance, independent contractors can find themselves bankrupted overnight. Even in the North Star State, people love to sue over the minor things and courts award outrageous sums all the time. All of this puts any business at risk.

If you are a Minnesota contractor, insurance needs to be part of your business planning. Most independent business people have some plan in place for how to handle contracts, finances, etc. Insurance needs to be integral to all planning.

You need to cover your employees as well as yourself. The business requires insurance for any vehicles or premises that they use or occupy. Besides regular policies, you need to consider adding higher levels of liability coverage. When setting down to plan your annual budget, add the cost of insurance in the mix.

For a smart Minnesota contractor insurance agents are part of the backup team. One of the smartest things any independent businessperson can do is get a good working relationship with their insurance provider. Traditionally, this meant going down to your local insurance agent and setting down to talk. Well, business has changed with the introduction of the internet. In Minnesota, many companies shop for their insurance online. Many companies out there still give great customer service even if you live across the country from their offices. It is a matter of finding the right agent and letting them know what you need.

If you are a Minnesota contractor, insurance is crucial for your business. Many smart customers will not hire contractors that do not have the proper insurance coverage. That is in their best interests. A smart contractor will realize this and do the smart thing for their interests: buy insurance. With the internet, you can find great rates from many companies through a single agent. This will save you money and build your relationship with your insurance agent. It is important to make sure you, your employees, and your customers have coverage just in case someone makes a simple mistake.