As a small business owner, you understand the importance of protecting your enterprise from unforeseen risks and liabilities. Commercial insurance is a key component of safeguarding your business. When you’re in the market for commercial insurance, asking the right questions is essential to ensure that you’re getting the coverage you need. To help you make informed decisions, here are 10 smart questions for small businesses to ask when looking for commercial insurance.
What Types of Coverage Do I Need?
Start by understanding your business’s specific needs. Do you need general liability, property insurance, workers’ compensation, or a combination of these and other policies? A knowledgeable insurance agent can help you identify the right coverage types.
What Is the Legal Requirement in My State?
Insurance requirements can vary by state and industry. Ask about the legal requirements for insurance in your state, so you can ensure compliance with local regulations. If you are licensed by the State, you will want to check with the licensing division on the requirements.
What Does the Policy Cover?
Be sure to clarify what each policy covers, including its limits and exclusions. Understanding these details is essential to assess whether the coverage meets your needs.
What Are the Premiums and Deductibles?
Inquire about the cost of premiums and the deductibles associated with each policy. Knowing the cost and how much you’ll need to pay before coverage kicks in is crucial for budgeting.
Are There Any Available Discounts?
Ask if there are discounts available. Many insurers offer discounts for bundling policies, implementing safety measures, or having a claims-free history. Other possible discounts may apply for different types of policies with same carrier, personal and commercial policies with same carrier, or life insurance with the same carrier, implementing safety measures, full payments, automatic payments, or having a claims-free history.
What is your Claims Process?
Understanding the claims process is vital. Ask about the steps involved and the expected timeline for claims to be processed.
What About Business Interruption Coverage?
Commonly referred to as Business Income Coverage. Recent events have highlighted the importance of business interruption coverage. Ask about coverage for disruptions like natural disasters, pandemics, or other unforeseen events that could affect your business operations.
Do I Need Professional Liability Insurance?
If your business provides professional services, professional liability insurance is essential. Ask whether it’s necessary for your industry and how it can protect you from claims of negligence or errors.
Can I Customize My Policy?
Every business is unique, so ask whether you can customize your policy to fit your specific needs. This flexibility can ensure you get the coverage that’s tailored to your business.
You’ve Selected A Local Agent. Now What?
By asking the above questions, you can make well-informed decisions when shopping for commercial insurance. Settle on a local insurance professional to build a business relationship with. Their industry expertise should benefit your business and eagerly work with you to meet all your insurance needs. With the right insurance in place, you’ll have peace of mind knowing that your business is protected from the unexpected.
Reliable, Agency, Inc. is a leading local source for local insurance advice and can be your go-to option for small business insurance. We have an office in Cloquet and Hermantown, Minnesota and one in Superior, Wisconsin. At Reliable Agency, Inc. we have nearly 50 years of business experience. Contact one of our commercial lines agents today and we’ll happily answer these 10 smart questions for small businesses. Let us take care of your insurance needs so you can take care of your business needs!
