3. Carefully select your policy limits
The limit on your commercial insurance policy is the maximum amount of money your insurance company will pay out after an insured loss. Most policies begin at $1M and $2M liability limit. To determine how high your policy limit should be, identify the worst-case loss scenario for your business, and estimate the cost of recovering from that incident. That loss cost should be your starting point for determining the limit of liability to purchase.
4. Review your existing insurance policies
If you already have commercial insurance, check which coverages you have today, and identify the gap between what you need. You may already be covered for specific risks and not even know it. For example, commercial property insurance often includes crime coverage, such as employee theft. If you’re not sure what’s included in your current policy (which is fine!), ask your broker to explain the limits and restrictions of your policy.
5. Shop around for the right fit
Once you have a good idea of what you need, browse different insurance providers that have experience in your industry. You do not need to accept the first policy that you are offered. Instead, ask your broker to describe the policy and coverages in simple terms to make sure you understand what is included. You may be able to reduce the limits of or exclude unnecessary coverages to secure a better commercial insurance quote. Also, make sure you review all the sub-limits, as each coverage on your policy could have a different limit.
6. Check the exclusions
The list of exclusions is one of the most important things to review in an insurance policy. If one of your significant exposures appears as an exclusion, make sure you have it removed or look for another policy. It doesn’t matter how inexpensive the policy is; there is no point in purchasing an insurance policy that excludes one of your most significant risk exposures.