There are so many different insurance companies and many claim to offer the best deals. The best deals donâ€™t guarantee the best coverage. As a small business owner, money is tight but insufficient coverage is less beneficial than no coverage at all.
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What Type of Business Insurance Should I Get?
There are nine different types of business insurance, including liability, property, errors and omissions, business car insurance, workers compensation and employee health. For small businesses there is also key person insurance, to protect the earnings ability of the business owner and the company.
The type of business insurance a company should purchase depends on many different factors, including the type of business the company is in, the number of employees the company has, and the day-to-day risks associated with the business.
So business insurance is an individual decision based on company goals, risks and state regulations. Each company should research the types of insurance, the costs involved and their own goals before deciding on an insurance package.
How Can a Company Assess Risk?
There are some areas a company can evaluate to determine the type of risks associated with the business and whether or not they justify purchasing liability business insurance to protect the company.
â€˘ A company should look at what type of risks occur in the day to day operations of the company
â€˘ Business owners should determine the probability of each of these risks occurring and their potential financial impact
â€˘ Businesses should also determine what can be done to reduce or eliminate these risks- either by creating safety procedures or passing the risk on to others, such as shippers or sub-contractors
This process can help determine the types of insurance are more important for the company to purchase and
which forms of protection can be deemed less necessary. It is important for the business owner to evaluate this list periodically to make sure that business risks or needs havenâ€™t changed.
How Can a Company Reduce Cost?
There are ways that companies can reduce the cost of business insurance without sacrificing coverage. On average, the minimum deductible for business insurance is $250. If a business owner wants to lower the annual premium of their insurance they can raise the deductible without sacrificing coverage.
There are also groups that offer business insurance discounts as a part of their membership benefits. The National Federation of Independent Business and the National Association for the Self Employed are an example of two such groups.
The National Federation of Independent Business has a partnership with the American General Life and Accident Insurance Company to provide discounts to its members.
The National Association of the Self Employed offers health insurance discounts. These two groups offer a great solution for solopreneurs and businesses with only a few employees. Membership with the organizations provides other benefits as well such as mentoring, networking and resources to help the business succeed.
Group plans, such as the ones that are offered by the above organization are a great way to allow small businesses access to coverage and rates normally reserved for large organizations. It is a good avenue to explore if looking for health insurance for yourself or employees. Compare insurance quotes online now!
Comparison shopping is the best way to get a lower rate. Using a comparison site that provides you with rates from many different companies at once let’s you see what is available. Then you can discuss details with theinsurance agents and ask questions, and perhpaps barter for a better deal. One way to know that the inurance agencies are high quality is to only accept quotes from A+ companies. Enter you zip code and compare insurance quotes now!
This A+ rating is assessed by the A.M. Best Company, an organization that rates many different types of insurance organizations.Â There are some companies that offer full service insurance policies. Purchasing an insurance package is another great way to lower insurance costs.
Many times the best insurance company for your business insurance needs varies by state. This is why multi-quote websites are often a good place to start, for they can give you a good picture of what is available in your state. After that, researching on your own can help ensure you have a foundation for the range of coverage and rates in your area.
No matter what the insurance agency may offer as a quote, it is important to receive details on what theÂ coverage entails, deductibles, and exclusions. Talk to the insurance agent and make sure all your concerns are addressed before you agree to the policy.
Business needs change and so will your need for insurance coverage. Make sure you review your policy toÂ determine if it still fits your needs and goals. If not, start the comparison process again to evaluate other companies. The insurance agency that was able to take care of you four years ago may not be the best fit for you now.
Also make sure that you are up to date on state and federal laws to determine if new changes mean new insurance coverage, or perhaps a more extensive policy. Continuous changes in workerâ€™s compensation and safety regulations can spell trouble for the small business owner without an up to date policy. Don’t delay any longer. Get a FREE business insurance quote comparison today by entering your zip code!