Business insurance encompasses many types of insurance, depending upon what kind of business you are involved in. You will be able to buy business insurance without a business reference.
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What is a Business Reference?
A business reference is usually a letter written by a company on behalf of your company. This can be from any number of companies.
- Legal firms
- Property management companies
- Other insurance providers
When you have a business reference written on your behalf, it will tell the insurance company a little bit more about you. It can tell them about any court proceedings that you were involved in, how much money your company is worth, whether you have been a good tenant in past properties or a number of other things.
When a Business Reference is Helpful
As you shop around for business insurance, the companies will be looking to see what kinds of insurance you need and if you are high risk for any of the insurance. High risk businesses will usually be charged higher monthly premiums because the insurance company is taking on the risk of insuring you. The more that an insurance company feels they may have to pay on your behalf will increase your premiums.
If the premiums are very high and you have a business reference to show that you are not as high risk as the company initially thought, it could help your case. This can be done to show that you have the financial backing of a strong bank account or investors to cover high indemnity claims. It could also be used to show that you have never had claims against you, as would be the case with auto insurance or others.
Decide What Kind of Business Insurance You Need
One of the hardest aspects to getting business insurance is to know what kind you actually need. You can figure this out using several different methods:
- Calling insurance companies
- Using an insurance broker
When you research, you will have a very good idea as to what kind of insurance you will need for your company. The internet is a great source for information, in fact we have hundreds of articles addressing all the FAQ’s people have concerning insurance, right here on Insurance Providers.
If you call insurance companies, they will usually be able to guide you as well. They can tell you what you will need based upon the type of business you are engaged in. The more you tell them about your company, the more they can help you. However, this should only be done as part of the research on the type of policies you need. It is important to compare rates among several companies before signing anything. This is where our quote comparison tool can help. Enter your zip code into the quote box at the top of the page to begin comparing.
Work With An Insurance Broker
You may also want to call an insurance broker. They can break down all the types of insurance you need step by step so that you have a clear understanding of the process. They can also help you to locate the lowest premiums and the best companies for you.
It’s important to get all of the insurance that you need so that you are covered in the event that anything happens. You need to ensure that all aspects of your business are covered. This includes:
- Company vehicles
- The property of the business
- Your advice/liability
- Your employees
Once you ensure that you know what kind of business insurance you need, you are ready to find out who has the best premium for you.
Shop for Business Insurance
With or without a business referral, you can get business insurance, so it’s important to focus on the costs of that insurance so that you don’t find yourself paying too much.
There is a really good rule of thumb with insurance – the higher the deductible, the lower the monthly premium.
You must decide what you think is best for your company. You can save a significant amount of money each month with high deductibles. The problem is that if you are involved in an accident or someone makes a claim against you, you could end up paying a large amount of money out of pocket before insurance kicks in and begins paying for their share of the total damages or claims.
Price Comparisons For Better Rates
The best way to get the lowest prices is through cost comparisons. In order to effectively compare prices, you should be:
- Looking at 3 to 4 companies
- Getting the same information from everyone
- Asking for the quotes in writing
When you get quotes from three or four companies, you are ensuring that you are getting the lowest possible rates. There are hundreds of insurance companies out there and they all claim they have low prices. The only way to know for sure is to compare a few companies, otherwise you could be paying the highest rates in the area and not even know it.
You must also get the same information from all of the insurance companies. The only way to be sure that you are comparing accurate numbers is to get the same details from everyone. This means the same deductibles, the same types of insurance and everything else.
No Surprises – Get Your Quotes In Writing
You should also ask for the quotes in writing. This way you have time to look over everything and ensure that the price is the same once you decide. It will also help you to compare easier than trying to read through any notes you jotted down. Further, when you get quotes in writing, it gives you the opportunity to leverage a lower price out of other companies. There are quite a number of companies who will negotiate prices based upon their competitor’s prices, but only if they can see the quote in writing.
Find the Best Quotes Now!
Business insurance is one of those things that you absolutely have to have if you plan on conducting a legitimate business. It may seem expensive when you add up all of the premiums, but it can actually save you a tremendous amount of money should something actually happen to your business.
When you are getting quotes, you should ask companies if a business reference will help to lower the price. The reference isn’t required, but if it could lower your premium, it may be something to consider. Enter your zip code below to begin comparing business insurance coverage!