If you want to keep your business operational amid financial challenges, you should consider purchasing business insurance. This is because, apart from losses due to stiff competition, your business also faces the risk of property damage from perils such as fire, floods, earthquakes, vandalism, and theft. It is worth noting that about 40% of businesses collapse permanently following a disaster. Worse still, even the 25% that manage to reopen are inclined to fail within one year of operation. Nevertheless, with the right business insurance coverage, your business stands a greater chance of survival through unforeseen disasters. That said, this article outlines the practical steps to get personalized business insurance.
Ask Your Agent to Explain the Coverage
The type of business insurance policies you purchase should depend on the nature of your business operations as well as the risks you face. For instance, if you run a professional service business such as a consultancy, the Insurance Information Institute (III) recommends getting professional liability insurance. That said, evaluate your business, identify the risks that you potentially face, and determine what coverage is suitable. Finally, ask a reputable insurance agent to explain the coverage options available, including their exclusions. Also, remember that you can significantly lower your insurance costs by mitigating the risks in your business.
Contact an Independent Agency for Multiple Quotes
Although the federal government regulates insurance prices, it is possible to find different quotes from various insurance companies, including non-admitted insurers. Basically, shopping around gives you access to better deals, discounts, and lower premiums depending on the rules of the insurance carrier. With this in mind, request an independent agency to show you multiple quotes, preferably from different insurance carriers, and choose what suits your business.
Provide the Required Paperwork to Insure Your New Business
Once you know what coverage is suitable for your enterprise, organize the necessary paperwork for underwriting and application purposes. While at it, be sure to include every aspect of your business that requires coverage, including, among others, automobiles, buildings, and equipment. Take note that this process can seem complicated, especially if you are a first-time buyer, and hence, you may consider hiring an expert to do the paperwork.
Get a New Quote for Your Insured Business
Depending on the details you gave during underwriting, your insurance quote is subject to change. With this in mind, you should consider getting a new quote for your insured business and possibly lower the cost of your coverage. To get an accurate quote, ensure you provide as much information as possible about your business. Importantly, the information you provide should be truthful and accurate.
Get an Objective Review Faster
Due to the changes that may happen in your business, your business insurance needs will most likely keep fluctuating. While expanding your business requires you to increase your insurance coverage, downsizing it should prompt you to reduce coverage. This helps to avoid over-insurance and under-insurance in your business. For this reason, ensure you conduct an objective review of your insurance needs fast to determine what new coverages are necessary and which ones should be eliminated. From there, ensure you review your insurance policies at least once every year and keep your coverage up-to-date, says the National Association of Insurance Commissioners (NAIC)
Follow these steps to get personalized business insurance. For help finding the right insurance protection for your business, contact the experts at Knight Insurance Services today. We are happy to guide you through the process of acquiring personalized business insurance.