5 Questions to Ask Before Buying Business Insurance

Well over 30 million businesses are operating in the United States. One thing they have in common, no matter who they cater to or what they’re selling, is that they could benefit from some form of business insurance.

Insurance creates peace of mind for business owners as they navigate the murky waters of catering to customers, managing inventory, and everything in-between. In some cases, insurance may even be a legal requirement.

Below, we dive deeper into the process of buying business insurance, specifically, questions you should ask yourself or an insurance agent before selecting a policy.

1. Why Is It Important for Me to Have Insurance?

Understanding why it’s important to have insurance can help you be more proactive in buying a comprehensive policy. This question can be answered in broad or specific strokes.

For a specific answer, work with an insurance agent that can analyze your business and provide specific guidance as to where your company is exposed. A broad answer as to why insurance is important is that it allows your business to survive adversity which almost certainly will come up.

As we mentioned in this post’s introduction, some forms of business insurance may also be a legal requirement (worker’s compensation insurance for example).

2. What Kind of Insurance Do I Need?

Buying business insurance can be an overwhelming process because there are several types of insurance you’ll need to purchase to create a comprehensive policy umbrella. If you have to ask questions like, “What are paid up additions?” or “What is the difference between property and liability coverage?”, you should speak to a knowledgeable agent.

Agents can walk you through all of their insurance products and clue you in on which products are most common for people in your position.

3. How Much Should My Policy Limit Be?

On top of there being different types of insurance coverage, each coverage type carries a different policy limit. The higher your limit is, the better covered you’ll be but the more expenses you’ll need to incur to maintain your coverage.

As a rule of thumb, your policy limit should be high enough to cover your business and personal assets in the event of a lawsuit.

4. How Does the Claims Process Work?

This is a question for your agent. Different insurance providers can have very different claims processes. You’ll want to make sure yours makes it relatively simple for you to get your hands on the money you’re entitled to after an accident takes place.

5. Where Can I Buy the Best Insurance?

There are several insurance agents out there. Which one is the right one to do business with?

Answering that question will take research and time so do your diligence to ensure that the policy you buy is backed by a reputable organization.

Buying Business Insurance Is Well Worth the Stress

Several businesses are uninsured or underinsured because they don’t want to go through the trouble of buying business insurance. Believe us when we say though that if the livelihood of your company matters to you, the trouble of sorting through policies is well worth it.

We hope our post moves you to get covered today and our team welcomes you to read more of the helpful content on our blog should you need additional guidance.

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