If you’re starting up your own small business, one of the first things you need to consider is your small business insurance. You can go onto almost any insurance site and request a free quote based on a questionnaire you fill out about your business. They’ll probably show you a fantastic figure that entices a sign-on with them. While it’s close, this quote will seldom be the one you get. It can come down to needing more thorough information about your company, how much coverage you’ll need, and even the payment plans you’ve selected. Once you get the quote, it’s easy to get a little confused. Here’s a breakdown of what your quote might mean to you and your new business.
● Lowest doesn’t always mean the best: You can’t jump at the lowest price and assume you’re getting the best deal. While the price is essential, you have to pay attention to the type of coverage you’re getting for each rate. What is the liability coverage, property coverage, deductible, aggregate limit, per-occurrence limit, and more?
● Comparing each quote: Pay attention to whether you’re getting quotes as part of a bundle or a business owner’s policy (BOP). A BOP includes general liability, property insurance, and a few other policies combined or just a standalone quote, which is only the general liability policy. You, more than anyone, will know how your business operates, so compare the many policies and quotes you need. Take your time with this. Once you’ve gotten your insurance, it will be tough to get a new one within the first year or two at the same rates.
● Paying options: Most insurances offer a few different payment options. These options are usually in two, four, or ten payments per year, or you can pay for the whole year. It can vary from insurance to insurance. How much do you have upfront to pay? If you can afford it, paying for the entire year upfront will eliminate an extra bill as well as give you the peace of mind that you’re covered. It also ends up being a little less expensive than installments. With the installments, you have to pay a certain percentage of the premium with the first payment. The rest of the cost is divided up into the remaining payments. Overall, you’ll end up paying a little more, but each installment payment will be a little easier to manage, especially if you’re starting out.
● Quotes are not final: The very first quote is a ballpark of what you’ll be getting. While it’s close to the last quote, you won’t get it until you’ve talked with an agent who will go through your application with you more thoroughly. The quote can rarely change dramatically, but just don’t be surprised when it does.
If you’re ready to get your business off the ground or have some more questions, don’t hesitate to contact our office today!