If you’re reading this article, chances are you already understand the importance of insuring your business against potential losses with commercial business insurance. Kudos to you for being a forward-thinking business leader.
Every year, thousands of small business owners lose not only their businesses but also their livelihoods and personal assets, such as their savings and their home, due to a lawsuit. The commercial business insurance team at Brashears Insurance is here to ensure you and your business are properly protected.
Here are 5 tips for buying commercial business insurance broker:
- Know your risk potential
- Determine your needs
- Find a reputable broker
- Shop your policies
- Educate yourself
Know your risk potential
While you may be sizing up potential insurance companies, they are sizing you up as well. Some businesses carry more risk than others. Insurers typically have pre-determined levels of risk they are willing to accept, depending on the industry and type of business.
This risk level is determined in the underwriting process, during which the insurer evaluates your application and decides whether or not it’s willing to provide the requested coverage. If they decide your risk level is acceptable, and you’re comfortable with the premium, the policy is issued. Every insurance policy contains a premium and a deductible.
The premium is the price you pay for the coverage, whether monthly or annually. Lots of factors can impact your premium, such as business location, business type, and the amount of insurance you carry.
The deductible is the amount of money you agree to pay upfront out of pocket before the insurance kicks in. The higher the deductible, the lower the premium. This is what we call “self-insuring.” At Brashears Insurance, we encourage our customers to self-insure the maximum level with which they are comfortable. This allows for maximum savings on premiums and can also deter smaller claims.
Commercial business insurance: Determine your needs
Like most businesses, your business probably looks nothing like it did three, four or five years ago. If you’re not constantly reassessing your commercial business insurance needs as your business evolves, you could be leaving money on the table. Lots of money.
We encourage every customer to evaluate their business insurance coverage needs on an annual basis.
Find a reputable broker
Insurance brokers, such as Brashears Insurance, can save you thousands of dollars by shopping your insurance policies with multiple carriers. When looking for a reputable broker, make sure they check the following boxes:
- Does your broker understand the risks associated with your business?
- Is your broker recommended within your industry?
- Is your broker licensed in the state in which your business operates?
Shop your policies
One of the best ways to ensure you’re getting the best value from your insurance policies to shop them among multiple carriers. That’s the beauty of working with a broker. We will shop your policies for and recommend any necessary changes.
Last, but not least, is the need to educate yourself. The more you know about the insurance you want to buy and what it covers and doesn’t cover, the better off you’ll be. When you are buying commercial business insurance, it would behoove you to consider a business owners policy. Did you know that you can save money by getting a business owners policy instead of buying individual policies from different companies?
For more information on how to buy commercial business insurance, contact a Brashears Insurance associate today at (805) 564-7645.