What you should know about small business insurance are two things that are important when you are out to get commercial insurance for your business. There are many factors that you will need to take into consideration. But the most important of them are:
1) Price We are all told value is more important – but admit it – we all think about price. You need to know you are getting the best quote available. The only ways to ensure that is by getting quotes from a few different insurance companies and compare them. When you do that, check all the pros and cons so you get the complete picture. Some insurance agencies charge a very small fee upfront but has a lot of other fees such as processing fees, inspection fees, documentation fees, etc which will take the price through the roof. Better still run a search through the Internet and get savvy about the current premiums for your industry. Another good way to find a good quote is to ask around from friends and relatives. There is nothing better than a tried and trusted hand.
2) Stability Professional companies such as Standard & Poor’s Insurance Rating Services, AM Best, Weiss Research, etc rate all insurance companies’ performances. Make it a point to get sufficient information about the company you choose for your business. Be warned that there are below average agents and some lower rated insurers out there… and unless you are very careful, you can end up in a situation where you may be out-of-pocket for an un-covered claim. Be careful when you make the decision – a wrong decision can be the road to bankruptcy.
3) Service Everyone in this world who buys something looks forward to have the best value for their money. When it comes to insurance the best value is synonymous with service. You can decide how good is your company through the way they answer to your queries and their patience in explaining the nitty-gritty of the insurance policy and its alternatives. You can also gauge the quality of their service from their online reviews. You make it a point to do your research about how they handle claims, service etc… Make inquiries and decide only after you are thoroughly satisfied. The last thing you want to happen is in a claim situation you never hear back from the claims rep, or you get the run around. Be sure before hand who you are dealing with.
4) Be Informed All insurance companies need to be registered with the National Insurance Producer Registry. You should not look at insurance companies with a rating of less than B+ as they might be in financial trouble. You want to make sure there is no major black spot on your company; you need to check it out here whether the insurance company has any complaints against it. * A word of caution here, many insurers get complaints for not paying a claim that they had no legal responsibility to pay – meaning the insured didn’t read or understand their policy’s coverage and exclusions. The Registry will also confirm the validity of the complaints and you can get a pretty accurate picture about the said insurance company from here.
5) Insurance Agent You can get your business insured online through an insurance agent as well. They work on commission basis with the major insurance companies and if you get a good agent they will be able to guide you that can be the best policy and coverage for you. However, keep in mind that he works for commission and she will usually be interested to earn the highest amount. Hence he will be more likely to promote the company that pays him the highest commissions. If you accept her advice, and run your check on the company as well. When buying an insurance policy through an agent, you will have to ensure two things: The agent is responsive and has a good reputation The company she is recommending is good. Look for online reviews for the agent to see what others have said about dealing with them.