The Ins and Outs of Purchasing Commercial Insurance
If you run a small business, whether online or out of a traditional brick-and-mortar store, you need commercial insurance to ensure you’re fully protected from an array of unexpected problems. However, we understand this process can seem complicated, especially for new and smaller businesses that do not have as much experience.
In this guide, we will walk through the ins and outs of purchasing commercial insurance to help you find the optimal policy and coverage for your needs.
What Is Commercial Insurance?
Commercial insurance is designed to protect the enterprise, owner, and employees. It’s a broad term and covers a plethora of policies, which is why it’s important to know the specific insurance your business needs.
Why Is Commercial Insurance Important?
Commercial insurance is an essential component of setting up a business. By obtaining this insurance, business owners can enjoy the crucial peace of mind that their company and their employees are protected.
The primary benefits of commercial insurance are how it will provide essential protection from common business emergencies. These can include property damage or theft, liability, and employee or customer injuries. Depending on the type of commercial insurance you select, the scope can be even wider and can cover cybersecurity, auto insurance, and bond insurance.
When to Get Commercial Insurance
Every business should have commercial insurance. It is always better to get this insurance as soon as possible, but there may be some specific scenarios when it is even more vital.
The most common times to ensure you have the correct form of commercial insurance for your business include:
- Policy renewal
- Hiring or laying off employees
- Business relocation
- New equipment purchase
- New products or services
- Significant increase or decrease in income
Business owners should also know the best time to get commercial insurance. The general rule is the best time to get this insurance was when you started your business, but if you haven’t done this, the second-best time is now. Depending on your situation, there are several key moments where commercial insurance makes the most sense. These are:
- Knowing which month you want your policy renewed (the holidays or the start of the next fiscal year)
- Consider which time of the fiscal year is most appropriate for purchasing insurance (new product launches, etc.)
- Varied cash flow occasions (how much of your budget you can assign to insurance policies)
What to Know When Purchasing Commercial Insurance
Knowing how to get business insurance will increase confidence in your business and give you and your employees the peace of mind they need.
When selecting the right commercial insurance, there is a simple four-step process to follow that will help you identify the best type of insurance and the most suitable insurance company for your company’s needs.
Evaluate Your Risks
Risk evaluation allows you to outline and highlight the most common hazards and risk factors within your small business. The scope of these risks depends on your business. A construction business will pose more risks than a small business that operates from home and does most of its business online. However, this isn’t to say that online businesses still do not encounter threats, with cybersecurity issues being a potential risk.
When evaluating your risks, consider what liabilities the business could be prone to. Think about how and where you operate and whether you have any employees, as they will need coverage, too. A physical store is more likely to experience property damage than your home-based business, while manufacturing defects could increase the risk of a lawsuit.
Once you have determined these risks, you can look at which type of commercial insurance is right for you.
Shop Around
You should never rush to pick the first policy you come across. Shopping around gives you the chance to get quotes and consider which services at what price are most beneficial. It can be overwhelming for small businesses, so consider using an insurance broker or marketplace to get an aggregation of the best deals for you.
If you are confident that you know what you want, contacting a company, such as Keller Insurance Services, directly will help you speed up the process.
Compare and Determine What’s Best for Your Business
Once you have a shortlist of commercial insurance options and quotes, it’s time to decide which policy is best for your business. There are several factors to consider when choosing the right policy.
These factors include:
- The overall policy coverage
- The liability limits
- The premiums and deductible
- Payment options
- The overall company rating
Don’t select the highest-rated company or cheapest quote blindly. While it can be a good place to begin, you may be better off by selecting a commercial insurance company that specializes in your industry or has specific qualities that will benefit you. It may also be possible to bundle multiple coverage policies together, which can lower your premium.
Purchase Your Policy
The last step of the process involves completing and purchasing your policy. Depending on the company you chose, you may have an array of options regarding payment frequency, so decide if you want to pay the entire cost of the policy course (usually a year) upfront or if you prefer to pay month-by-month.
You should also discover how to file a claim when needed, as this will save time if your business ever encounters issues, such as property damage or liability. The quicker you can make a claim, the sooner you will solve any problems.
The company may put you in touch with a designated agent who you will work with throughout the duration of your policy, so get to know them and send questions you have before you complete your purchase.
Summary
Keller Insurance Services offers a wide range of commercial insurance options for businesses operating in New Jersey. If you want to learn more about how we can help ensure full coverage for your organization, contact us today to speak to one of our agents.