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8 top tips: how to compare small business insurance quotes

These 8 steps can help you compare business insurance quotes and find the right coverage for your business.

Finding the right small business insurance  is about more than looking at how much you’ll pay in premiums. There are a number of factors to consider, such as your biggest business risks, policy exclusions, and coverage limits. These 8 tips can help you find and compare the best policies to fit your business – and your budget. 1. Start with reputable insurance carriers Make sure you request quotes from dependable insurance carriers. You don’t want to buy an insurance policy at a bargain, only to learn that your insurance company can’t pay a claim. There are several independent rating agencies that measure the financial strength of insurers. Avoid any insurance companies that aren’t making the grade. Insureon only works with A-rated carriers, so no matter which insurance quote you choose through us, you’ll have peace of mind that your insurer will be there when you need them. 2. Consider more than just insurance rates For small business owners with tight budgets, it can be tempting to make a purchasing decision based solely on the cost of premiums, instead of focusing on the best protection for your business. Before making a decision based on price, keep in mind that you're purchasing business insurance policies to reduce the risk of a financial loss. If an insurance company’s policy costs less than the competition’s, there’s probably a reason why it’s priced that way. Does it leave out the coverage you may want later on? Are the limits high enough to comply with client contracts? Try to look beyond dollar signs and sift through the details that distinguish one policy from another. There are a number of ways to try and reduce small business insurance costs without sacrificing the protection you need. Consider options like:

  • Purchasing a business owner’s policy (BOP), which bundles general liability insurance with commercial property insurance – usually at a saving.

  • Raising your deductibles and lowering policy limits can also help trim costs.

  • Paying your policy premiums annually instead of monthly.

If an insurance company’s policy costs less than the competition’s, there’s probably a reason why it’s priced that way.

3. Understand what’s covered – and what’s not Business insurance coverage can vary drastically from policy to policy and insurer to insurer. Review each policy and coverage option carefully, so you know what you’re getting. Every insurance policy will detail its inclusions and exclusions, or the events that will and won’t be covered. Pay attention to these items because they determine the terms of your coverage. For example, when reviewing commercial auto insurance quotes, you'll want to understand the level of coverage each policy offers for bodily injuries, property damage liability, collision coverage, uninsured motorist coverage, and personal injury protection. You can learn details about what's covered under the most common small business insurance policies by following the links below:

  • General liability insurance

  • Professional liability insurance

  • Errors and omissions insurance (this is another name for professional liability insurance used in certain industries)

  • Workers' compensation insurance

  • Cyber liability insurance

  • Commercial auto insurance

  • Commercial property insurance

No matter what type of policy you're reviewing, never assume that the coverage provided in every quote is the same. You don’t want to purchase a policy, only to find out when it’s time to file a claim that it doesn’t have the protection you need. 4. Check policy limits and deductibles Your policy limits are the maximum amounts that your insurance provider will pay for a specific event, instance, or claim under a policy. You'll want to choose the limits that can adequately shield you from damaging claims over liability lawsuits or other financial losses. There are two types of limits: per-occurrence and aggregate:

  • Per-occurrence limit: The highest amount your policy will pay for any single claim.

  • Aggregate limit: The total your policy will pay for all the claims in a single policy period (usually a year).

Frequently, your client contracts, property lease, or mortgage agreement will require you to carry liability coverage like a general liability insurance policy or a professional liability insurance policy. If they do, you’re probably required to carry a minimum level of coverage. Make sure that the policies you buy meet the requirements of any contracts you have. Your deductible is the amount you pay out of pocket before your insurance benefits kick in on a claim. Usually, the higher the deductible, the lower your premium. However, when reviewing your options, don’t pick a deductible amount that’s more than you can afford to pay if you need to file a claim. For example, say you purchased a cyber liability insurance policy with a $1,000 deductible. If you suffer a data breach but don't have that money on hand, then your benefits won't kick in. Remember, your insurance policy won’t do you any good if you can’t raise the cash to cover the deductible.

5. Pick a policy that can grow with your business When you compare small business insurance quotes, think about how quickly your business might grow in one year. When reviewing limits, inclusions, and exclusions, you’ll want to leave a little wiggle room to ensure your insurance continues to meet your needs – even if you experience an increase in business. 6. Compare quotes with your current insurance coverage When comparing quotes for different types of insurance, take a look at your own policy (if you have one), first. Think about what you like and dislike about your existing policy. What does it lack? Do these new policies fill coverage gaps that were making you nervous? Your current insurance policy can be a useful measuring stick to determine whether you're getting the right coverage for a fair price.

7. Consider how soon you’ll need coverage Where you purchase your insurance can impact how quickly you’ll get coverage. You may need to secure coverage as soon as possible to sign a lease or land a big client contract. If you require coverage right away, confirm with your agent or your carrier that there will be no delay in purchasing the quoted policies. Hit the ground running. When you start a quote with Monarch, you can quickly compare quotes from top carriers and get a certificate of insurance the same day. 8. Ask your agent for guidance One of the biggest perks of working with an agent is that they can help you identify your biggest insurance needs, make sound decisions, and guide you through the comparison process. Any quotes you receive online aren’t final, as they’re based on the information you include in your application. If you misunderstood a question or made a mistake when entering information, your quote may change as the agent helps you refine your answers. Turn to your insurance agent when you need help with:

  • Deciphering industry jargon. Not sure what a particular coverage does or what a word in your policy means? Your agent can explain the complexities of insurance in plain English.

  • Assessing your needs. Insureon agents specialize in industries as varied as IT consulting to construction and are licensed in every state. That gives us firsthand knowledge about the risks your business could face.

  • Making a decision. Your insurance agent can point out the differences among various plans, which can help you make a confident and informed decision.

If you have more questions about comparing business insurance quotes, chat with an Insureon agent today.

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