Can you guess when the world’s very first insurance company was formed?
It was shortly after the 1666 Great Fire of London swept through, destroying over 13,000 buildings. Out of the ashes (quite literally) came “The Insurance Office,” which organized the world’s first firefighting departments.
Fast-forward a few centuries, where there are more business insurance options than you can count. It’s a necessary part of protecting your company, but how can you choose the right business insurance coverage?
It starts with finding the right business insurance provider. Keep reading to learn more!
Know Which Options You Need
Laws vary depending on your locale and the type of business you own.
Worker’s compensation coverage, for example, is required in nearly every state. Your landlord might require you to carry general liability insurance, while commercial property insurance could be optional.
If possible, you’ll also want to offer health insurance coverage for your employees. These are just a few of the many factors you’ll need to consider when choosing your small business insurance options.
Calculate the Most Likely Risks
We all like to save money, but this is one area where you don’t want to cut corners. It’s always better to err on the side of overinsured rather than underinsured.
To do so, think about the biggest risks to your type of business. For example, if you own a convenience store in a big city, you’ll want insurance against theft and robbery. If you’re opening a day spa, you’ll need to carry professional liability insurance.
Consider your physical location too. Most general insurance policies won’t cover natural disasters, so you’ll want to get extra coverage if your area is prone to floods, hurricanes, or wildfires.
Look for Providers Who Know Your Industry
When you start meeting with insurance providers, look for an agent who’s well-acquainted with your industry. They should also have a stellar reputation and an “A” business rating.
What if your business operates across state lines or at a national or international level? You’ll want to work with an agency that has in-depth knowledge of business laws everywhere you operate.
Ask plenty of questions during your consultations to ensure all your bases are covered. You should also think about insurance options that can easily scale up or down according to your business needs.
Consider a Bundled Policy (BOP)
The majority of small businesses need more than one type of insurance. For this reason, many business insurance providers offer bundled packages to make things easier (and save you money).
A Business Owner’s Policy (BOP) usually includes general liability insurance and commercial property insurance. Depending on the needs of your business, your insurance provider will also recommend other options that make sense for your company.
This might include adds-ons such as commercial auto insurance or cyber insurance. By bundling your insurance needs together, you’ll pay a lot less than buying each plan separately.
Find the Best Business Insurance Provider Near You
Small business insurance may seem overwhelming at first, but it doesn’t have to be. Discuss your needs and concerns with a business insurance provider, and they’ll gladly walk you through the process.
Now that you know how to find the best business insurance plan, what’s next? Our site has more great tips and advice for you, so stay right here and continue browsing!