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