How to Buy the Best Small Business Insurance in 3 Easy Steps

Have you ever wondered why some entrepreneurs manage to put theory into practice and grow a healthy, thriving business, while others fail miserably, go bankrupt and strive to find the best way to get out of debt? Naturally, excellent entrepreneurial skills and hard work are a part of the secret recipe for success. But there is one other element that can change the trajectory of your small-scale business, for the best or for the worst: small business coverage. As you may already imagine, small business insurance is not a luxury, but a real and very pressing necessity. If you are a cautious person, you cannot and will not open your business today and buy insurance tomorrow.

Extremely unpleasant events, like a burglary attempt,a fire or a flood for example, can impact your productivity in a severe manner, especially if your company is still in its infancy. So think about it this way: if you depend on the amount of money generated by your company to make ends meet on a monthly basis or if you own expensive assets (office equipment, business vehicles and so on) that require the highest level of protection, an ideal insurance policy should be considered a must-have. Obviously, the insurance buying process can be quite lengthy and stressful, especially when you are trying to purchase small business coverage for the first time. To make things a whole lot easier for you, we can show you how to buy the kind of policy that you really need in 3 extremely easy steps.

1)      Plan Ahead

As tempting as it may be, don’t agree to accept the first offer made to you by a certain insurance company representative. Plan ahead to avoid miscalculations that could overbalance your budget and still leave you exposed to countless major risks. When it comes to selecting the best policy, consult every single available resource to make an educated purchase. Consult useful, concise and easy to follow guides provided by the Small Business Association and the National Federation of Independent Business. Don’t forget to compare small business insurance rates by zip code.

Also, if you somehow feel cheated or live under the impression that your current insurer is not offering you a fair deal, remember that you can always choose to count on the services provided by a public adjuster who could help you get the type of coverage that you need and deserve to run a profitable business. Before changing your location, make sure you obtain an accurate property insurance estimate. If you want to assess the value of your current property, don’t factor in its original price. Take into consideration its replacement value to determine how much money you could actually obtain from your insurer if you were to record a major loss in the near future. In-depth research that is part of an early planning strategy can help you save time and money, while avoiding the most common pitfalls of the insurance buying process.

2)      Determine What Type of Coverage You Really Need

This is perhaps one of the most important steps that you will have to focus on. Take a deep breath and start tracking and analyzing every single conceivable risk that could affect your business directly and indirectly. Some risks are associated with your line of work, while others can impact all businesses, regardless of their sector, size or employee count. Some types of coverage, like workers’ compensations represent a legal requirement. Workers’ compensations comprise death benefits, disability pay and also cover the medical expenses of your employees. Rates vary a great deal, based on the level of risk associated with your company and also with the industry in which you operate. What you have to understand is that small business coverage is actually a mix of different policies that address different categories of risks.

As a general rule, if your company pulls in less than 3 million dollars annually, investing in a so-called B.O.P. policy (business owners’ policy) would be an excellent idea. This type of policy gives you the chance to add or remove different policies as you see fit to get closer to the ideal type of coverage in your price range. You should also know that the price, features and benefits of B.O.P. policies offered by different insurers can also vary, so it may be a good idea to make an accurate comparison before signing on the dotted line. If your company grosses more than three million dollars, it may be better for you to purchase policies separately.

Every business owner who is currently in this situation should be fully aware of the fact that there are 4 policies that they couldn’t and shouldn’t live without: workers’ compensations, property insurance, general liability insurance and business interruption insurance. You already know how the first policy works and what it covers. The second one, property insurance, covers damages to your physical premises and your office equipment. There are numerous factors that could influence property insurance rates, including the age and current condition of your office building, its structure, its location and so on. General liability insurance allows you to cover your costly mishaps that may affect the health, image or profit margins of a third-party. It is a very useful policy, especially if you operate in a high-risk sector. Last, but definitely not least, business interruption insurance can help you get back on track in record time, even when you suffer a major loss and are forced to abandon your old building and rent a new one. This type of policy covers rent and also lost wages. Its costs are negligible, so don’t even think about buying small business insurance without throwing in a few extra dollars for this essential extra.

1)      Get Quotes and Meet Your Favorite Insurer

Don’t schedule an appointment with an insurer if still don’t know how much money you should invest in your policy. Dig a little deeper on your own by getting free accurate quotes from Insurance Quote Depot. Compare small business insurance rates by zip code to make an informed purchase; then you can feel free to meet one or more insurance company representatives and get ready to profit from an incredibly convenient deal.