You want what’s best for your business, and you know that part of keeping your it strong is protecting it with commercial insurance. However, buying insurance can be an overwhelming task.
At Zensurance, we’re dedicated to making insurance easy and transparent. A typical policy is over fifty pages and filled with complicated industry-jargon. It may be challenging to understand what exactly you have coverage for.
The first step to understanding your insurance policy is understanding what you’re looking for so that you don’t end up being misquoted and purchasing a policy that does not adequately meet your needs.
What is Commercial Insurance?
But first, let’s make sure we’re on the same page. You may know it as commercial or business insurance. The name doesn’t matter so much, but what does is that commercial insurance for business owners covers legal expenses and settlements related to bodily injury or property damage to a third-party.
Ok, where were we?
Seven Steps to Navigating the Commercial Insurance Quote Process
1. Understand your exposure to risk
Before buying any commercial insurance policy, you should know which risks you should be most worried about. For example, a snow removal company will need coverage for slip-and-fall injuries, while a spa owner will need malpractice coverage. Research claims and risks that are common in your industry, and with that in mind start looking for an insurance policy that will protect your business from those risks.
2. Find ways to reduce your exposures
For each of your significant exposures, see if there are solutions to limit your risk. For example, if you store a lot of customer financial data on your network, consider encrypting your devices and installing firewalls. By doing so, you will reduce the risk of a cyberattack on your company, as well as potentially reducing the insurance premium you pay. Speak with your broker about identifying risk management tactics for your specific business needs.
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.
7. Ask for retroactive coverage
A little late to the insurance game? No problem. For many professional lines insurance policies, you may be able to get coverage retroactively to a past date. This is important because some loss or damage, such as compromised data from a cyberattack, could go unnoticed for an extended period. If you do not have retroactive coverage in your commercial insurance policy, your claim could be denied if it did not occur during the policy period.
What Can I Expect To Pay For Commercial Insurance?
Much like insurance policies, the cost of your insurance premium will vary based on your exposure to risk, industry, and revenue. On average, a small business owner can expect to pay $650 for a commercial insurance policy with a $1M limit.
We know you’re busy running your business, so let us do the shopping around for you.
Ready To Start? Let’s Get a Quote!
Getting a business insurance quote shouldn’t be complicated!
At Zensurance we simplify the process of getting commercial insurance so that you get the coverage you need, quick and easy!
Our friendly support team is always ready to answer questions, we’re just a click or a phone call away.