Five Questions to Ask When Choosing a Business Insurance Provider
Any business owner has the responsibility of protecting their investment. Otherwise, all the time, money, and effort spent in building it will have been lost. That's why business insurance exists. More specifically, that's why business liability insurance exists. Asking the right questions when choosing your liability insurance provider is crucial in protecting your business.
What is business liability insurance?
Business liability insurance essentially covers business owners from the risk of loss due to lawsuits from clients and other parties. All businesses are at risk of causing some amount of injury, loss, or damage to other parties and their properties. Without the proper liability insurance to protect oneself from such risks, a business can literally be ruined. Furthermore, choosing the right general liability insurance companies becomes a crucial decision in the formation of a business.
Choosing general liability insurance companies
General liability insurance companies are one option at a business owner's disposal when choosing the right insurance provider for a business. All businesses have their unique set of needs when it comes to risk. Professional services, for example, involve the direct providing of services that require a certain kind of business liability insurance. General liability insurance companies may not serve these kinds of businesses adequately. That's why business owners must ask the right kinds of questions when choosing the insurance that's right for them and their business.
Five questions to ask when choosing business insurance provider
That's why there are five basic questions any business owner should ask when seeking coverage that includes the right business insurance for them. General liability companies that can provide the right answers would be your best choice, of course.
1) Do they have the right experience?
A common impulse among business owners, especially small business owners, is to seek business insurance through their personal insurance provider. This route is easy and understandable. The problem with it is that your personal insurance provider might simply not have the right background in providing the adequate insurance that your business needs.
Simply stated, your personal insurance company might leave you exposed to the kinds of risks involved with your business. Most importantly, your personal insurance company might simply not provide you with the business liability insurance that directly addresses the risks of your specific business.
It's why it's so important that, if you seek general insurance liability companies for your insurance, you do so with one with the background and experience that you need - specifically. Anything else would leave your business exposed to unnecessary risk and loss.
2) Do they provide adequate liability insurance?
Once you have moved beyond your personal insurance provider, and are deciding on which business insurance companies are right for you, the top priority for the business owner is to know if the company provides adequate business liability insurance.
The reason this is such a serious consideration to the business owner is that some general liability insurance companies may not simply have the kind of experience in providing the kind of coverage that your specific business needs. If that's the case, then the kind of danger you're exposing your business to can be considerable. Without the specific insurance package that covers the kinds of products and services you offer, the investment you make in your insurance will simply be a bad one - and one that you may pay dearly for.
3) Will they still adequately insure your assets?
As much as it's important to make sure your business gets adequate business liability insurance, a business owner can't forget the basics. While general liability insurance companies can and do usually provide the kind of protection from liability you need, your business still has assets that need protection from all kinds of risks, including property damage, stolen goods, and other threats to the things you own as a business. Without this basic kind of insurance coverage, all the business liability insurance in the world isn't going to be good enough. A comprehensive package that protects the assets of your business, as well as liability risk, is simply a good business decision.
4) Will they grow with you?
If you want your business to grow, you should expect that your business insurance provider grow with you. Most business decisions involve the need to take into consideration the long term. When choosing among business insurance companies and picking the right business liability insurance, getting beyond the here and now is an important factor to consider.
How much do you expect your business to grow in the first year? How much do you expect your business to grow in five years? What kinds of additional products and services do you think you'll be offering in the future?
Will your business insurance provider help you accomplish your plans and dreams? Will they accommodate your aspirations as well as theirs? Unless you feel comfortable that your insurance provider can stay along for the ride on the path of your choosing, then other liability insurance companies might be your best choice.
5) Can you trust your business insurance provider?
There are many factors involved with trust. Those factors become even more complicated when your business is involved. While you may feel that you're getting the right business liability insurance that meets your needs, it's probably just as important that you believe the insurance company is in it for you as well as for them.
When you're dealing with any business, you simply have to be satisfied with the kind of customer service they're providing. Companies that appear to be more interested in their commissions than your insurance coverage are obviously not good for business and should be avoided.
Choosing among the right business insurance providers out there is one of the most important decisions you'll make as a business owner. Ensuring that you receive the proper liability insurance, on top of adequate coverage for all your assets, are primary concerns. Asking the right questions, doing the necessary homework, and being satisfied that you've done everything to make the right choice in business insurance provider is a must. Otherwise, you're putting at risk everything you've worked for in setting up, establishing, and growing your business.