a group of coworkers discussing their small business insurance policy needs

5 Things You Should Look for When Shopping for Small Business Insurance

No matter the size of your company, you need small business insurance. Designed to protect companies in a number of different ways, these policies can be the difference between a thriving business and one that ends up in major financial trouble due to a number of unforeseen and unfortunate circumstances.

How can you be sure that you’re choosing the right small business policies for your company and its needs? Here are some things to look for when shopping around.

1) Knowledge of Your Industry’s Risks

What are some of the potential things that could go wrong during the course of a business day? For example, if you have a warehouse, fire, flooding, and other accidents could occur. If you run an accounting or law firm, you run the risk of being charged with malpractice. No matter what the possible risks are, you need to make sure that you have a policy in place to cover them.

2) Background Information on General Policies

How much do you know about the general policies available for small businesses? If you have any questions about anything or aren’t sure which policies you need, you’ll have to do a bit of research on your options, as well as find a knowledgeable insurance agent who can provide this background information. Otherwise, you might end up with policies that you don’t need or ones that don’t offer the necessary coverage.

3) Deductible Size

Every insurance plan has a deductible. This is the amount that you’ll need to pay out of pocket when you need to file a claim. Your insurance company will pay for repairs or damages, minus your deductible. How much can you afford to pay out of pocket? Think about this logically, and make sure that you have one in place that you can pay without much thought should something happen. Also, keep in mind that your deductible and your insurance rates are tied together, with higher deductibles often allowing for lower premiums.

4) Understand What Affects Your Rates

Speaking of insurance rates, there are plenty of other things that can affect them as well. Prior claims paid out, as well as deductible amounts, and even your payment status can make your rates either higher or lower. For example, if you don’t pay your premiums on time or even let your insurance lapse, then you’ll end up paying more for insurance. This is one good reason you need to make sure that you get those payments in on time, as well as understand what else can potentially raise your rates.

5) Consider the Legal Factor

Finally, you also need to consider which types of small business insurance that you’re legally required to have. Depending on your industry and location, you might be required to have certain types of insurance in place, otherwise you could be fined or penalized. Make sure to check with your insurance agent to ensure that you’re following the laws in your area with your policies.

Need help reviewing your small business insurance policies? Contact our knowledge team at Spivey Insurance. We’ll help you review your coverages and protect your business.

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