Commercial insurance is insurance that is uniquely designed for your business. In terms of commercial insurance there are four main categories of coverage which include: property insurance, general liability insurance, commercial automobile insurance, and umbrella insurance. Before you start shopping for commercial insurance for your business, you should know these five tips. For more tips and advice be sure to contact one of our Risk Advisors here at McClone.
1. Shop and Evaluate Value
Just because you have always been able to get a generous deal on your private auto or homeowners insurance policy from your neighbor doesn’t mean that particular insurer will be the best choice for your commercial coverage. Evaluate policy prices, but be sure your decision is based on value and not solely focused on price.
2. Do Your Homework
Our apology for debunking this insurance myth; as it turns out, your Commercial Insurance needs will not be magically solved by a one size fits all policy. Your insurance coverage requirements will depend on a number of variables. In order to receive the most effective coverage for your business we recommend that you work one on one with your agent (or one of our agents at McClone) to tailor your policy for your unique needs. Work together and do some homework before you enter into a business agreement. Discuss the following questions:
- Do you own your own property?
- Do you have customers who come to your work site?
- How many employees do you have?
- Do you have vehicles to cover?
- How many vehicles are over the road?
- What is the total number of autos you use?
- What are these vehicles used for?
- What kind of inventory do you have to carry?
- Is there any special equipment you have to maintain?
Knowing what kind of coverage you need can help you keep the costs down on the policy you choose. Only obtain coverage that fits your business and industry. It’s the work you do to prepare that prevents unnecessary insurance or attaining a policy that doesn’t cover one of your major needs or risks.
3. Conduct a Risk Assessment before You Shop
Before you start working with an insurance agent and they begin the process of shopping your insurance to different insurance carriers make sure you take a look at yourself in the mirror. Determine if changes can be made to lower your risks. Your work in this area alone may get you a lower premium because the insurer will see your efforts and your attention to the small details.
At McClone we provide an all-inclusive risk management audit to all qualified prospective clients at no charge as a test drive of our unique process. Learn more about the McClone process.
4. Get Credit for Having Great Credit
People with the best credit are proven to be lower risks which in turn provide the lowest premiums. The better your commercial credit, the lower your commercial insurance rates can be. Pay your bills on time and monitor your total debt load that you carry.
5. Don’t Over Insure
It’s a trap! Do not pay for insurance when you don’t need it. Depending on the area of risk that you’re seeking to mitigate, insurance may not always be your best solution. Our recommendation would be to consult with one of our Risk Advisors and determine the most valuable and cost-effective solution to efficiently protect your business.
If you are in a seasonal business, shop for a policy that will allow seasonal adjustments or coverage. Why spend money insuring your business in the off season when you can use the savings to invest in business growth. Most insurance carriers will not allow seasonal policies, but it can’t hurt to look.