How To Choose the Right Insurance Plan For Your Small Business


If you’re starting a small business, you’ve probably already realized there’s a wide range of insurance policies available to you. From general liability insurance to commercial auto insurance, it can be difficult to determine which ones you need and which ones you can skip for now. Finding an excellent insurance provider who can walk you through the process is the best thing you can do for yourself. Use these tips to help you do it.

Find an Insurance Company With a Web Presence

You’re a busy person, especially now that you’re opening your own business. Skip over the providers that don’t seem to have a web presence. Local isn’t always best when it comes to insurance providers. Instead, look for a company that has a presence on the web and uses technology such as Insurtech. These types of software allows insurance providers to always know what’s going on behind the scene, but they provide a lot of benefits for you as well. You’ll be able to talk to a chatbot that can help you answer basic questions, pay your bill, and much more, all without ever having to talk to a live person. This means you can do things in your own time instead of taking time out of your busy workday to make phone calls.

Work With a Company That Specializes in Small Business Policies

Many traditional insurance agents only provide insurance to individuals or large corporations. This is because they don’t make very much commission on small business policies. This doesn’t mean you won’t find insurance, though. You just need to find one that specializes in what you need. Look for a company that not only provides you with a policy but also takes the time to educate you about which policies you legally need, which ones are a good idea to have, and which ones you can skip.

Compare 2-3 Different Insurance Providers

Never go with the first provider you talk to. It’s always a good idea to compare 2-3 different ones. It’s not just about who will charge the least amount, either. Remember, you get what you pay for. Additional things to consider include:

  • Ratings and Reviews – Do other small businesses have successful partnerships with the insurance provider? Are there a lot of negative reviews? How far back do the reviews go?
  • Customer Service – Nobody wants to talk to someone who makes you feel like your a nuisance. If any of the providers you talk to seem to be rude, cut them off of your list to save yourself some hassle.
  • Licensing – Both the agency and the carrier need to be licensed in the state that you do your work in. Keep this in mind as you search for the right provider.
  • Payment Terms – Do you need to pay monthly, quarterly, or annually? Consider how your business is doing financially and which type of payment options work best for you. 

Understand What Might Affect Your Rates

Regardless of which company and policies you go with, you need to learn what could affect your insurance rates now or in the future. In addition to your industry’s risks, other things that can affect your insurance negatively include allowing your coverage to lapse or hiring employees who have poor driving records if you have company cars. Things that can work in your favor include installing fire suppression systems, security alarms, and cameras. It’s also important to create a safe work environment to reduce the risk of a workers’ compensation claim.

Finding the right insurance providers and policies can feel overwhelming, but arming yourself with education and information can help you to make the right choice. Remember, go with your gut feeling about a company above all. This will help you to weed out the ones that don’t feel right for your needs.

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