Momentum - Business to Business Online Magazine MOMENTUM January 2019 | Page 34

Business Insurance Small Business Insurance Shopping Tips Few small businesses have the resources to self-insure against large risks, such as liability and business asset protection. Whether you’re getting business insurance for the first time, or you’re looking to better your existing insurance, it pays to take the time to investigate all your options to keep your costs down. After all, you want insurance to help you manage risks cost-effectively – and not spend so much that buying insurance becomes a hardship in itself. Shop around for price quotes – It goes without saying, you need to compare prices. Get multiple quotes so you can compare. An always make sure you are adequately covered. Be ready to provide the information needed for your quote. The agent will need a good description of your business, what you do and how you accomplish that. Have your Social Security Number or TIN ready along with annual gross receipts and payroll figures. If you are currently insured, most agents will need a “Loss Run” from your current carrier for the last 3 to 5 years. A good agent will take the time to collect as much information as possible to insure that an accurate quote is obtained as soon as possible. Be aware that it takes longer to obtain Business or Commercial Insurance Quotes. Start shopping your coverage 30 to 60 days before you need it. Compare coverage – Don’t stop at just comparing insurance premiums. Also compare different coverage options. See what’s available, and what you realistically need coverage for. By: Jan Laman Harbour Insurance Services [email protected] Seek advice from a qualified insurance professional – You’re going to want somebody in your court to explain options and seek out the best coverage for your situation. A knowledgeable insurance agent or broker you can talk with is invaluable. A good agent will be proactive, bringing up issues and savings opportunities you may not have thought of. He or she will help you cut through industry terminology, and “compare apples to apples.” Increase deductibles – Higher deductibles get you lower premiums. Chances are you may not submit a very small claim of a few hundred or even a few thousand dollars to your insurance carrier. So why insure for that amount if you’d probably pay it from your operating funds, anyway? Factor in the value of “defense” clauses – Litigation today is expensive. Even if the underlying lawsuit is frivolous and you win your case, the cost of defending a liability claim could be enough to bankrupt a small business. In my opinion, one of the greatest benefits of insurance is the insurer’s obligation to defend your business in the event of a lawsuit. So while premiums and deductibles are important, understand the insurer’s obligations to provide a defense. Review your coverage annually – At least once a year, review your coverage for duplications or unnecessary coverage. For instance, you may have sold a business unit or discontinued a line of business, and no longer need certain coverage. There’s savings right there. Like most things in business, the more actively you manage risks and insurance of those risks, the better results you will get. So get active! MOMENTUM / January 2019 33