How to Shop for Business Insurance

Do you have insurance? If not, you’re one step away from disaster. Starting and running a business is expensive and I know it can be tempting to skimp on seemingly non-essential things like insurance. But it can be even more expensive to run your business if your company doesn’t have enough protection. Why take the risk? Protect yourself by purchasing an insurance policy that will help cover any losses or damages that could happen to your company. With so many options available, how do you decide which type of coverage is best for your situation? Don’t worry- we’ve got this covered with our handy guide on types of business insurance policies and what they do.

What is business insurance and how does it work

Business insurance can be a confusing topic, and it’s a good idea to know the basics before you start running your business. There are many different types of coverages that might be able to protect your company from any potential losses. Each business will need a custom policy or set of policies that can protect it against the risks that are unique to the business. Some of the most common coverages out there include General liability, Professional liability, Property, Business Auto, Tools/equipment coverage, Employment Practices liability, Cyber liability/security, Workers Compensation and Umbrella policies. Each coverage offers protection against a specific set of losses and can vary in the amount of coverage.

Get a quote for your specific needs

It’s important to do your research before buying a policy so you can protect yourself with the right policy. You will likely need to talk to a professional about your business so they can help you identify potential risks and offer coverage recommendations. For example Chris Gaines, over at Pointe North Insurance Group in Atlanta Georgia will advise you no matter what line of businesses you are in. They look at each business differently to address the unique risk that each one has such as a business that relies on their websites to generate the bulk of their revenue. This type of business has an exposure to cyber attacks so they may recommend securing cyber security coverage with enough protection to help them offset losses they may experience if their website is hacked and or compromised. “One thing that has become more prevalent is Cyber attacks where hackers will take down your site and will demand ransom in the form of cryptocurrency. Cyber security coverage can help protect you from a loss you may experience if that happens to you.” says Chris.

Understand the most common types of coverage

Before you reach out to a professional like Chris, you may want to educate yourself on what each popular type of coverage may cover but keep in mind that different brokers and companies offer different benefits. Use this as a guide to ask questions about what each broker or company can offer to meet your unique needs and situation.

General Liability

General liability insurance is the most common kind of coverage that can help protect your business from claims. If you’re an entrepreneur who has a store front and sells products to customers, then it’s mandatory for you to purchase this type of coverage. General liability insurance can cover claims like defective products and personal injury accidents on company property.

Professional Liability

Professional Liability insurance typically provides protection against claims arising from negligence, errors and omissions, defamation, invasion of privacy, data breaches, or other wrongful acts committed by an insured in the course of his/her business.

Workers’ Compensation

Workers compensation insurance covers medical expenses, income replacement, and funeral benefits for employees who are injured on the job. Without workers compensation, you could lose your hard-working staff to injury or death. This is a coverage that is regulated by the State and each State can vary in what they require.

Cyber Security

Cyber Security insurance is a must for businesses that deal with sensitive customer data. It can cover the cost of legal fees, regulatory fines, and not to mention the cost of repairing your reputation after a leak. Cybersecurity Insurance provides protection against damages caused by cyber breaches and other malicious online activity. This type of insurance is often required by law or business contract in order to receive funding from lenders or investors.

When should I buy my policy, before or after starting my business?

So, you’ve been thinking of starting a business and have decided to get some insurance for your new venture. Do you buy a policy before or after the start-up?

It’s a tough question because there are many factors that can lead to both decisions being valid. However, there is one thing that will help make the decision easier: how much risk do you want in your life? If you don’t want any risk then I would recommend buying as soon as possible so if something happens it won’t affect your profits from the first day of doing business. If you’re willing to take on more risk, then waiting until things settle down may be an option too. Either way, just remember not to miss out on coverage by letting too much time go by or forgetting altogether. In certain businesses having a policy is a requirement to work for other businesses or individuals. These days a common request is for a Certificate of Insurance (COI) that shows the types and limits of coverage your business has in place before you are able to provide work or products.

How to get an insurance quote

Do you need an insurance quote? If so, there are a few things to consider. Do you want to take on the task yourself by doing a lot of your own research and going directly to each carrier to then comparing or have an agent, like Chris assist you with the process. If you head out on your own the first thing to do is educate yourself on your needs then consider if the company your reaching out to offers what you need. Some companies will only offer liability coverage while others provide more extensive coverage like medical or property damage protection.

If you choose to go through an independent agent/broker like Chris you should make sure that they work with multiple companies, can advise you on coverages you need and do the shopping for you to secure the best value.

Whether you shop by company, or go with an independent agent/broker, make sure that you get multiple quotes from different providers before making your final decision on which one is best for you!

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