10 Commercial Insurance Questions to Ask Your Agent
Before you start shopping for insurance, consider these questions. You can ask you agent these questions as you look for the right coverage for your small business. The more you know, the better decision you can make when it’s time to buy coverage!
1. What types of insurance are available to small business owners?
You should consider what type of coverages are available to you as a business owner. Often, there are different types of insurance bundles available to businesses in your industry that can help protect your business. Being informed about all the options out there can help you make a more informed decision as you shop commercial insurance.
2. What insurance should I consider and why?
Your agent will help you assess the types of coverage you need to help protect your business. The needs of a construction business are very different than those of a online retail shop. Your agent can help guide you through the insurance buying process and can offer recommendations and suggestions that make sense for your business. They will also be able to answer any questions you might have about the coverage.
3. What are the policy’s limits?
Your commercial insurance policies have limits, or the amount that your insurance will cover. Make sure this is enough to adequately protect your business. Depending on the nature of your work, where you are located, and other factors can impact what your policy limits should be.
4. What does this policy NOT cover?
While it might be clear what coverages do cover, sometimes what they don’t cover is equally as important. Make sure that you are clear on what is and is not included in your insurance policy. That way, you can understand where you have gaps in coverage and how that may impact you if peril does strike. For instance, flooding is often a separate policy. Therefore, if you do not have flood insurance, and flooding causes damage to your business’s inventory, you could be incurring a large financial burden.
5. How and when do I submit a claim?
If you have not submitted a claim before, this process can be a bit daunting. Your agent will help give you some pointers and guidelines on how to do this if need be.
6. Are there any discounts?
There are many discounts that insurance companies offer. You should ask your agent about them to see if you qualify for any. A common way to save on insurance is though bundling multiple types of coverage. There may be discounts that you are unaware of that your agent can help indentify for you.
7. What’s the cost of coverage?
The way that insurance coverage works, there is a premium and a deductible. Your premium is your annual cost of coverage. Your deductible is how much you will need to pay out of pocket before your coverage kicks in. Talk about these numbers with your agent and make sure they are the right amounts for your business. Often a higher premium will result in a lower deductible, and vice versa. There are different things that can affect the cost of insurance, including your industry, where you work, and more. Your agent can help you work through the process of finding a coverage that works for your business.
8. How do I protect my property?
Depending on where your business operates, you might need to get coverage to protect it. Talk to your agent about property insurance to make sure that the building and contents are protected. Other businessnes may not have the same needs for property coverage, so it’s important to chat to your agent about property coverage.
9. Can I get more coverage?
You can ask your agent about possible gaps in your coverage. These are areas where you may be lacking coverage. Talk to your agent about ways to overcome these gaps.
You can also ask about potential umbrella policies and how they could benefit your business. An umbrella policy is designed to be a safety net – it extends your existing coverage. However, every business is different, and your agent can help you navigate through the difference coverages available.
10. What are the payment options for coverage?
Work with your agent to find coverage that works for your business. Often, insurance companies will offer discounts if you pay for your coverage in full. There may be other discounts available. Talk to your agent about how to pay for your insurance and what you can afford.