New Business Insurance – Cover your ASSetsNew

New Business Insurance – Cover your ASSets

New Business Insurance - Cover your ASSets

If you have a new business, you've already got many expenses and need to cut costs wherever possible but insurance is an absolute must and cannot be avoided. Consider what would happen to your business in the worst case scenario such as fire or flood and get the best coverage you can afford in the event that you need to rebuild any or all of it. Think about consolidating all your business insurance needs together to save money and get the best auto insurance policy, worker's compensation policy, liability insurance, business coverage, personal assets and comprehensive insurance rates possible. Follow these tips for your new business insurance and be sure to cover your assets.

Things You Will Need:

  • time
  • information statistics of current new business
  • checkbook

Step 1

Ask other businesses, an attorney or even a customer for a referral for a local business insurance agent that handles all types of business insurance needs so that you can develop a relationship with an agent and they can be readily available if you need on site assistance.

Find a local insurance agent that specializes in business insurance as they're the ones most likely to know what amount of coverage you should carry to protect your assets in case of emergency. You may be able to consolidate your auto insurance if you lease a business vehicle and can document the use for business purposes with accurate records. Other required new business insurance includes worker's compensation insurance, liability insurance, personal asset coverage and building insurance, business interruption insurance and may all be included in one combined policy. A combined insurance policy is typically much less expensive since you are dealing with only one insurance company and one insurance agent instead of different companies or agents for all your business insurance needs.

Step 2

Gather known business statistics as far as annual sales, payroll costs, value of building, the value of contents (this may need to be estimated for a new business that doesn't have at least one year of business records). If you have a lease with a commercial landlord, review your lease and provide a copy to the insurance agent so that they can make sure that what you are obligated to cover for your landlord can be included in your new business insurance policy.

Step 3

Meet with a commercial business insurance agent

New Business Insurance - Meet with Insurance Agent

Schedule an appointment to meet with the insurance agent (budget at least 45 minutes) and allow them to explain in detail all the variables covered for business auto insurance, worker's compensation, liability insurance, building insurance, personal belongings and contents insurance including business interruption insurance and to get a quote.

Prepare to take the insurance agent on a tour of your business so that they can see all items you own, or rent and can give you the best suggestions on how to cover your assets.

Take notes during the insurance meeting that you can review later and ask any questions you have so that you fully understand the new business insurance policy being explained and offered to you.

The insurance agent will guide you to get all the insurance coverage you need so you can sleep soundly at night without worrying if a catastrophe strikes. You'll be able to rebuild quickly when you have new business insurance that covers all aspects of your business.

Get a second quote from another business insurance agent and do all of the above again to compare the cost of insurance and find the best coverage that your business can afford.

Step 4

Don't risk being without new business insurance and make sure that the following areas will all be covered in an emergency:

Annual Business Sales (projected if new)
Payroll (projected annually if new business)
Business Assets
Personal Assets
Automobile year, make and model and type of business use

Coverage for the building and contents as well as coverage of your items and landlord items
Desired deductible that fits your budget

Step 5

Study and compare the commercial insurance policy quotes

Business Insurance - Cover your ASSets

Once you shop around for two or three insurance agents to get the best rate possible, you'll need to provide the same information for all of them and it is time consuming. If you have the time for more quotes, it could be worth the effort. Consolidating all the insurance into one package will guarantee the best rate that your new business can afford and that covers all aspects of the business should any catastrophe occur.

Step 6

Find out the details of the insurance policy

Find out from the insurance agent what the yearly cost of insuring the auto, business, worker's compensation and personal belongings, how to file a claim and how the payments can be made, either by mail, online or by phone. Many times if a one lump annual sum can be made, the insurance agent can lower the annual payment, otherwise there will probably be a monthly service fee added to the payment.

Step 7

Begin insurance coverage immediately

Once you decide on the best new business insurance policy, call your insurance agent for a final meeting to sign the appropriate paperwork and to begin coverage.

Be prepared to write a check to begin all of your insurance coverage immediately and before beginning to operate a new business. Rest well - you're covered no matter what happens!

Tips & Warnings

  • A rough estimate of insurance costs could be two percent of the total business sales per year so plan accordingly
  • Combining life and health insurance with the same insurance agent for auto, worker's compensation and business insurance could reduce the total costs significantly
  • Keep all insurance payments on time to avoid any lapse in insurance coverage
  • Utilize resources for insurance finder per zip code if needed
  • Inform all staff of the insurance company that you are using and what they should do in case of any emergency
  • Be wary of internet scams
  • Keep all insurance payments on time to avoid any lapse in insurance coverage
  • Review the new business insurance policy yearly and decide if changes need to be made before the due date of the renewal policy – meet with your insurance agent if needed so that any changes can be added