Chelsey Tucker graduated with a Bachelor of History degree from Metropolitan State University in 2019. She now writes about insurance with her specialty being life insurance and has been quoted on Help Smart Phone and MEL Magazine.

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Dan Walker graduated with a BS in Administrative Management in 2005 and has been working in his family’s insurance agency, FCI Agency, for 15 years. He is licensed as an agent to write property and casualty insurance, including home, auto, umbrella, and dwelling fire insurance. He’s also been featured on sites like

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Reviewed by Daniel Walker
Licensed Auto Insurance Agent

UPDATED: Mar 19, 2020

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Best Time To Shop For Business Insurance

The best time to shop for business insurance is in the initial stages of creating a company.

Despite financial struggles as a business first starts to grow, having the right protection in place is what will allow your operation to continue to exist when unexpected events occur.

With your ZIP code and our FREE rates tool you can get the insurance quotes you need right now!

Figuring out where to shop for business insurance is almost as puzzling as the myriad of coverage choices presented by the insurance companies.

A thorough process of comparison shopping is the best approach for locating an insurer that will provide adequate protection against loss for affordable annual premiums.

The amount of time invested in the research phase will pay enormous dividends in the early years of the policy coverage.

Since online quoting tools exist for every major insurance provider when you shop is less of an issue than how you compare. Go online in your pajamas, or use the business computer in the office. Just make sure you do your due diligence.

3 Steps to Source and Evaluate Online Quotes

Many business owners are overwhelmed by the amount of information that must be gathered prior to buying business insurance. An online quote website is a good place to start because of the standard quote form that is presented to visitors to the site. Information in those quotes must be evaluated for validity. When you are sourcing and evaluating the quotes you receive, follow three simple steps:

  1. Shop For Business Insurance

    Define needs – A great deal of self-assessment will be required to prevent gaps in coverage and carrying unnecessary insurance. One of the best places to start is with a pad of paper and a walk around the business, even if it is a home office. Every quote form will ask for different information, so use the form as a guideline. Make a note of all special insurance requirements, including expensive equipment.

  2. Use discernment – Obscure quotes will be returned that appear to offer an incredible deal on business insurance. Under closer scrutiny, you may discover that coverage dollar limits are lower and deductibles are unaffordable on these quotes. Quote websites are designed to find prospects for the insurance companies, and then the actual underwriting process begins when direct contact is established.
  3. Investigate Insurers– As the leading insurance industry watchdog, the A.M.Best Company is a trusted resource for objective evaluation of the insurance companies around the globe. To find out if a prospective insurer is financially strong, visit the A.M.Best website and find detailed information. As an example, take a look at the rating this entity gives to Allstate.

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Overriding Determinations

Insurance was designed to spread the risk of loss across everyone in a pool of policyholders who pay premiums. Perceived risk will determine how much

When To Shop For Business Insurance

each person pays each year. All business decisions will impact the cost of business insurance, which means that decision makers have some influence over the insurance premiums. In combination, all of the following factors will play a significant role in the cost of insuring against loss.

  • Insurance company – An insurer that specializes in business insurance will be able to offer products that are tailored to the needs of various businesses. Discounts are offered to encourage certain behaviors that will lower the risk of loss for the policyholder and the insurer. Each quote provided should reveal the coverage limits and deductibles. Discounts are applied to the policy later in the underwriting process.
  • Legal compliance – Businesses with employees must purchase unemployment insurance and worker’s compensation to comply with state labor laws. Certain types of work will require additional insurance.
  • Type of business – A construction company is perceived to have a higher risk of loss than an office based professional business.

The difference is borne out in the annual premiums paid by each business type. Equipment insurance for each industry is dramatically different.

  • Liability – Every state requires minimum levels of liability insurance, which is designed to pay for loss incurred by third parties. Many insurance companies are encouraging business owners to purchase an umbrella liability insurance policy to raise the liability limits at much lower insurance rates.
  • Deductibles – Every policy deductible must be considered in combination to evaluate the affordability of concurrent losses. Tens of thousands of dollars in deductibles can devastate a business and make the continuity plan impossible to execute.

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Common Mistakes

Business owners rely on experts inside the insurance industry to guide them through the maze of information presented by a set of quotes. Too many people find out that the insurance policies do not provide adequate coverage after the unthinkable has occurred. Avoid surprises by considering the common mistakes that have been made by others.

How To Shop For Business Insurance

  • Failing to shop around – Selecting the best possible insurance company cannot be achieved by watching TV commercials. Commonly known insurance companies are the ones with the largest advertising budgets, not necessarily the best claims payout records and customer service ratings. 
  • One-dimensional comparison – Receipt of various quotes is only the very first step in finding the best insurance coverage at the lowest annual premium. Some business owners make the mistake of choosing the lowest premium without looking at the coverage limits and deductibles.
  • Unknown business model – Every insurance company follows a different sales and support model for their policyholders. Some insurers offer centralized customer service departments that will work with each policyholder through email and over the phone. Local insurance agents vary in their approach as well. Some agents represent dozens of insurance companies.
  • Unaware of policy details – By far the most common mistake is the lack of knowledge that policyholders have about the policy details that are spelled out in the documentation. All questions should be asked to avoid misunderstanding when something happens.
  • Need To Shop For Business Insurance

    Coverage gaps – Sufficient insurance must be purchased to cover every major category. Agents should be notified of all assets and types of business conducted. If anything is left out of the description, the policy can be terminated and fraud charges can be pursued.

  • Unnecessary coverage – The opposite approach to omitting certain categories is to buy policies that are not needed. If a loss occurs, the insurance company will not pay claims under these policies. The premiums will be wasted.
  • Out-of-date coverage – Annual insurance reviews are an essential part of maintaining the accuracy of every insurance policy. When business events change the insurance needs, the policies must be brought into line with the life of the business.

Business insurance presents a balancing act of decisions for the business owner. Significant savings can be realized by insuring against loss and not avoiding every possible business expense that might arise. Business growth might indicate the ability to pay for a small loss from business funds and not needing to make an insurance claim. Experienced business owners know that maintaining sufficient funds to pay for certain events will save money in the long run.

Find out what you will pay for coverage by entering your ZIP code into the FREE quotes tool now!