Protecting your company is crucial whether you’re a start-up or an established business. That’s where the best business insurance comes in. However, when it comes to finding the right policy, there are a lot of factors to consider. Here are ten things you may not know about small business insurance companies that can help you make the best decision for your business.
Ten Things You Didn’t Know About Small Business Insurance Companies
- Not all small business insurers are created equal. There are three main types of insurers: direct writers, captive agents, and independent agents. Direct writers work exclusively with one company, while captive agents can sell policies from multiple companies but typically only represent a single insurer. On the other hand, independent agents can sell policies from multiple companies and aren’t tied to any insurer.
- Small business insurance companies usually specialize in specific industries or types of coverage. This allows them to develop deep knowledge in those areas and offer targeted products and services to their clients.
- Many small business insurers are regional or even local companies. This means they better understand the needs of businesses in their area and can provide more personalized service.
- Insurance companies use different formulas to determine premiums. This means that two businesses might pay different rates for the same policy even if they’re in the same industry and have similar revenue levels.
- Most insurance companies offer some form of discount to their clients. These discounts include enrolling in automatic payments or having a clean claims history.
- Some small business insurance policies cover things like identity theft and data breaches. This protection is becoming increasingly crucial as cybercrime becomes more prevalent.
- Many small business insurance policies have deductibles you must pay out of pocket before your coverage kicks in. The size of your deductible will affect your premium; higher deductibles usually mean lower premiums.
- Some small business insurance policies require using specific vendors for repairs or replacements after a covered event such as a fire or theft. Check with your insurer before using outside vendors so you don’t risk voiding your coverage.
- Most insurers have a complaints ratio that measures the number of complaints they receive from customers relative to their size. This information is publicly available and can be used to compare different insurers before you choose one for your business.
- Shopping around is the best way to find an insurer that’s a good fit for your business since different companies excel at different things depending on their size, focus, target market, etc. By doing your research and shopping around, you’re more likely to find an insurer that meets your specific needs and helps you sleep soundly at night, knowing your business is well-protected!
Conclusion:
When it comes to finding small business insurance, it pays to do your homework since not all insurers are created equal! By keeping these ten surprising things about small business insurance companies in mind, you’ll be able to find an insurer that’s a good fit for your business and offers the protection you need at a price you can afford.
