Choosing the right insurance for any business owner is an important decision which should not be left to the last minute or to anyone else's discretion. No one knows your business better than you do; it is imperative that the business owner be involved in the process of choosing the business owner insurance. Here's a quick guide should help you select a business owner insurance company for your business.
Things You Will Need
Personal property values including computers and leased equipment
Value of software and accounts receivables
Business Building Values
Commercial Auto Vehicle ID numbers
Drivers license numbers of any employee driving company cars
Sales values for last fiscal yearPayrolls for last fiscal year
Insurance Company Preferences
Most business insurance companies will write insurance for many types of businesses, but especially like to write insurance for a few particular types. Each commercial insurance company has a different appetite. For example, some insurance companies like to write insurance for retail businesses while other insurance companies left to right restaurant's etc. When an insurance company targets a particular class of business, they will often special insurance forms which provide additional coverage benefits in add-ons at a reasonable rate.
Ask your agent or broker or the insurance company itself, if you are going direct, if this insurance company is anxious to write insurance for your industry and if they have any additional coverage. Additionally, when you work with an insurance company that targets your industry, the rates usually quite competitive and the claims adjusters are well familiar loss exposures unique to your business.
Speak with Colleagues, Peers, and Competitors
Consult with other professionals in your industry about which company writes their business. This will give you a good idea which companies are writing for your industry and how happy people generally are with the insurance. Page through industry publications looking for advertisements from insurance though It is not necessary to limit yourself to those insurance companies with high advertising budgets. Sometimes the best coverage that you can get is from a smaller, but well rated and financially sound, local insurer.
Don't Limit Yourself to One Agent or Broker
Though you may trust your broker or implicitly and have worked with broker for years, not all brokers have access to all insurance companies. The larger the insurance brokerage firm, the more likely it is to be able to get quotes for most of the insurance carriers in the market. That does not mean that that insurance broker has access to all of the insurance companies which might offer you the best insurance for your business.
Ensure Financial Stability and Claims Satisfaction
Your insurance is worthless if the insurance company you are with cannot or will not pay its claims, no matter what or how good the insurance rates may seem. You should never accept insurance from a company that has less than an A- rating from AM best. It's preferable to have at least an A rating. Check with the Insurance Commissioner's Office for your state to evaluate any claims or complaints filed against the insurance company.
Once you find a business owner insurance program that fits your needs and your budget you can rest assured that you have covered your business from a variety of potential risks with a business owner insurance company that is financially sound please its claims, and understands your business needs.