10 Key Coverage Questions to Ask Your Agent

 

Everyone wants to get the best insurance coverage for their company. But many owners don’t know the right questions to ask. Use the following to guide your inquiries and serve as discussion points with your insurance agent. The answers will provide the basic information you need to obtain the best insurance solutions for your business.

Do I need commercial insurance?

New business owners often assume their fledgling company doesn’t require insurance coverage right away. This can be a costly assumption. Even if your operations are small, you should be covered. Find out which policies you need as a start-up business.

What types of coverage do I need?

Every business has unique needs. Most companies require, at a minimum, property insurance, general liability, and workers compensation coverage. Discuss your specific operations with your agent to determine which policies are necessary for your business.

What do I need to know about property coverage?

Find out how much insurance you will need to cover your commercial property. Don’t forget coverage for inventory, equipment, and intellectual property.

Is a Business Owner’s Policy (BOP) right for me?

A BOP is a bundle of policies that provide basic coverage for businesses. Companies may be able to choose this package to save on insurance, but you may need additional coverage beyond this starter policy.

What about policy limits?

While you’re determining how much insurance you need for your business, don’t forget to consider policy limits. Decide whether the limits of a policy you’re considering are realistic and will meet your needs. This includes workers compensation coverage, liability insurance, and property insurance.

Do I need an umbrella policy?

If a basic policy doesn’t provide sufficient coverage in certain circumstances, commercial umbrella insurance extends your liability coverage when the basic policy falls short. For example, an umbrella policy will protect your assets in the event you are found liable in a costly lawsuit.

How do you calculate workers compensation premiums?

Many business owners find the pricing confusing, so it’s important to have this discussion with your provider. Gaining a better understanding of how this works can help you properly classify your employees, avoid audits, and receive the best premium rate.

What is the claims process?

You should be familiar with the proper steps to take if you need to file a claim. Know how this process works and whom to contact with questions. Knowing these details in advance will make filing a claim a much smoother experience.

What are my options for payment?

To begin coverage, you must pay a premium for your insurance policies. This can be paid in monthly installments or as a lump sum. There are advantages to each method. Discuss these with your agent to determine which is the best payment plan for your business.

How can I save money on insurance?

Your agent can provide tips for lowering premiums and reducing the number of claims. Employee training and security systems are two common solutions. Keep in mind that lowering your risk factors helps lower your premium.

Still don’t have your own insurance agent yet? Contact us today to see how we can help you get insured!