The Simple Dos And Don'ts Of Choosing Commercial Insurance

When you operate a business from your home, you need to know if it is covered under your homeowners insurance policy. Click for more.

The Simple Dos And Don'ts Of Choosing Commercial Insurance

The Simple Dos And Don'ts Of Choosing Commercial Insurance

30 December 2019
Insurance, Blog

Commercial insurance is a form of protection that every business needs to have. In fact, it can ultimately help prevent your company from going under if you're faced with an unexpected catastrophe, lawsuit, accident, natural disaster. Consider these essential, but simple, dos and don'ts when you are searching for commercial insurance.

Do Contact Potential Insurance Agents with Questions

Most insurance agents will advertise how you can contact them for a free quote. Beyond that, it's okay to reach out to ask them questions you may have about potential insurance policies. To respect your time and the time of the insurance agent, carefully write down questions you have and ask them all during the initial phone conversation. That will help you learn all you need to know to make an informed decision.

Don't Buy the Cheapest Policy on Impulse

When you are shopping for commercial insurance, you may be excited to find a policy that seems so much cheaper than all the rest. However, that doesn't always mean you're getting the best deal. Some policies are listed as cheaply as possible to attract potential buyers. However, those policies may be lacking some important coverage options that pricier policies offer.

Consider this. If you go for the cheapest available policy that doesn't include all the coverage your business may need, you may end up facing an unexpected crisis that isn't covered. Then, by trying to save some money each month on your insurance payment, you could ultimately wind up paying thousands more than you would with a more expensive but comprehensive policy.

Do Choose a Licensed, Experienced Insurance Company

When assessing insurance companies, first look at whether each potential insurance broker has a license. Insurance brokers should maintain their licenses and meet any required continuing education requirements that might be in place. Also, you may look at whether the company is primarily focused on selling commercial insurance.

When you call for a quote, it's okay to ask an insurance broker about their background and whether they specialize in business insurance. It's not being nosy. It's just doing your due diligence to ensure that you are placing the financial security of your business in experienced, professional hands.

Don't Assume You Can Pick a Policy and Forget It

It's not a good idea to purchase the policy and never update it. In fact, you should reassess your insurance needs at least a couple of times per year as your business needs change. So, when you are looking at potential insurance coverage, keep in mind that you are just committing to an insurance policy for a set amount of time. The policy you choose today won't be the one you have to use in a year.

Finally, the process of choosing insurance for your business shouldn't be rushed. Take your time to carefully weigh your options. Ultimately, this is an important investment for your company, and you should commit to a commercial insurance policy before you open for business.

About Me
your home business and homeowners insurance

When you operate a business from your home, you enjoy the benefit of not having to commute to a busy office every single day. One thing that you may not have considered is whether your home business is covered under your current homeowners insurance policy. If you have expensive equipment, inventory and files stored in your home, you may need to add a rider to your insurance policy to ensure that you are covered. Find out more about how a home business can impact your homeowners insurance policy and whether or not you are protected as your policy stands today.