Questions To Ask Your Business Insurance Agent

Questions To Ask Your Business Insurance Agent

Business insurance is a must-have if you want to protect your venture from any catastrophic event that could strike anytime. It is your cushion from loss, mishap or lawsuit and will keep you afloat during hard times. It keeps your assets safe and protects your acquired assets when business hits bottom. As an entrepreneur, you do not want your financial investment gone all of a sudden.

To know which type of policy is appropriate for your business, getting information from agents of various insurance companies in your area is the first step. Once you find the right agent, he will be your partner-adviser as you go through the process of choosing a policy that offers optimum coverage.

Five critical questions you must ask your business insurance agent:

What is the right insurance for my business?

Every business needs different coverage protection. It is necessary to study each type of insurance to get adequate protection.

Property and casualty insurance – provides coverage for physical property in case of flood, fire and theft.

Liability insurance – mitigates potential financial loss when someone sues your company for negligence.

Workers’ compensation insurance – mandatory insurance to protect injured employees

Product liability insurance – pays for the damages that your product caused.

Commercial auto insurance – pays for any accident that damage your vehicle or cause harm to others during business.

Life and disability insurance – provides a fund for the owner, employee or business partners in case of disability or death.

Health insurance – covers a portion of your employees’ medical services fee as well as yours.

Business interruption insurance – provides a fund to cover profit loss and cash flow during the time that your business operation has stopped.

Professional liability insurance (Errors & Omissions insurance) – covers the damage due to an error during professional consultation or omission of facts that caused harm to clients.

When is the right time to get business insurance?

The best answer is as soon as you open your business. You need to protect your investment and yourself from potential hazard or liability. If you employ people, it is mandatory for employers to secure workers’ compensation insurance within the first month of operation.

What are the salient features of insurance policy that I need to understand?

Every insurance company has unique policy package. Study the scope of coverage, the limitations, the nature of liability limitations, the benefits and the premium. Ask your agent to give you pointers on how to file claims.

What is the government’s required insurance?

To secure a business license from any state, you are required to get general liability insurance with minimum coverage. It is up to you to upgrade the policy if you want broader protection or retain what you already have. Other types include workers’ compensation insurance, unemployment insurance and health insurance.

How can I reduce my premium payments?

Many insurance firms offer lower or discounted premium if you get a comprehensive insurance policy or get bundled package. The size and structure type of business are also determining factors. Other cost-cutting measures are hiring a risk manager, employee training, fire safety precautions and sound security system.

As the cliche says, preparation is the best protection!