Five Tips to Shop for Commercial Insurance

Posted by on Jul 17, 2015 in News | 0 comments

Five Tips to Shop for Commercial Insurance

A type of insurance called commercial insurance is a plan designed uniquely for your particular business. There are four main categories of coverage when it comes to commercial insurance, these include: property insurance, general liability insurance, commercial automobile insurance and umbrella insurance. You should know these five tips before you start shopping for commercial insurance for your business:

  1. Shop, Shop, Shop and Evaluate Value

When it comes to finding the best choice for your commercial coverage, evaluating policy prices is an essential element as long as your decision is based on value and you’re not just focusing on the price.

  1. Educate and do Your Homework

A one-size-fits-all policy will not magically solve your commercial needs because your coverage requirements depend on a number of variables.

  • Do you own your own property?
  • Do you have customers who come to your work site?
  • How many employees do you have?
  • Do you have vehicles to cover?
  • How many vehicles are over the road?
  • What is the total number of autos you use?
  • What are these vehicles used for?
  • What kind of inventory do you have to carry?
  • Is there any special equipment you have to maintain?

Understanding the type of coverage needed will help keep costs down on the policy you choose. It is important to only purchase coverage that best fits your business and industry.

  1. Conduct a Risk Management Audit

Before you begin shopping or working with an insurance agent, is there something you can do now to lower your current risk? This could help save you money on your premium because the insurer will take note of your efforts of managing risk within your business.

  1. Clean Up Your Credit

It’s a fact; those with the highest credit score prove to be a lower risk therefore rewarding them with the lowest premiums so pay your bills on time and monitor your total debt load.

  1. Beware of Over Insuring

If you don’t need it, don’t buy it! How much insurance your purchase depends on the area of risk that you’re seeking to mitigate and sometimes insurance isn’t the best solution. It’s always best to consult with a risk advisor to determine the most valuable and cost-effective solution with the best coverage to protect your business.

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