Business Insurance

4 Things to Consider Before Choosing Business Insurance

By July 31, 2018 No Comments

Are you a business owner? Then you need to know that choosing business insurance coverage is one of the best things that you can do to protect your business. Business insurance policies help to protect your business from significant financial losses through expensive lawsuits or unexpected disasters.

There are various types of business insurance, ranging from general liability and workers compensation to commercial property and errors and omissions. However, choosing an appropriate business insurance policy can be a challenging task, especially if you are a first-timer. Here are four factors that you need to consider before choosing business insurance. Talk to any Brashears insurance agent today for your commercial insurance policy.

Know Your Risks

Whenever you apply for an insurance policy, the insurance company will measure the information you provide through the application forms against a model of “acceptable risks,” before the insurance provider accepts or declines to insure your business.

Keep in mind that insurance providers may avoid clients that are considered ‘high-risk” or the chances of filing claims are so high. Therefore, it is important to assess the risks to which your business is exposed before you decide to contact an insurance provider. These risks will also determine the rates and terms of your policy. Working with an agent at Brashears Insurance will insure that you are accurately presenting your business to the insurance carriers who will write the policies that you need at the best possible price.

Consider the Type and Age of Your Business Equipment

Typically, large and industrial-style business equipment will cost more money to insure compared to the small or portable devices. You should also keep in mind that old equipment may be more likely to break down and could be harder to repair since most of its parts are no longer available in the market.

This means that your insurance premium rate may increase compared to when you choose to insure new equipment. Equipment usage may also be a factor that determines your premium rates.

Choosing Business Insurance? Shop Around

The cost of commercial insurance tends to vary for every business. The benefit to working with a broker like Brashears is that we can shop multiple carriers at once, which will save you time and money. You will receive a comprehensive review showing quotes from the carriers who write the type of insurance you’re looking for along with our experience of how each carrier will handle claims.

You should also remember the fact that some insurance providers specialize in insuring specific types of businesses. If you are looking for an insurance policy at a bargain, make sure that you approach more than one provider and compare rates. You should also compare the level of customer service offered to you and the type of coverages before you make your final decision.

Consider the Size of Your Business

It is also critical to find insurance coverage that will match the size of your enterprise. Go for the standard small business commercial insurance policy that is commonly referred to as a business owner’s policy, or BOP, if you are running a small business.

This option will offer you the right coverage for your small business without paying for other coverage that you don’t need. However, large businesses usually require additional coverage that a typical business owner’s policy can’t provide.

Are you a business owner? Contact Brashears Insurance Company today choosing business insurance. We are here to protect your business and help you achieve your goals.