Every small business owner knows the importance of having adequate business insurance. Having the right coverage may mean the difference between success or failure when faced with a natural disaster, accident, or a liability claim.
But how can you be sure of buying the right coverage? There are so many different kinds of policies, each with its own premiums and limitations, that it’s easy to get confused and even end up with the wrong coverage.
That’s why many business owners choose to work with independent insurance brokers. If you have not reviewed your business insurance needs lately, it’s time to dust off those policies and make sure you have adequate coverage.
If you’re already working with an insurance agent, you may be reluctant to switch insurance carriers. But remember that the agent works for the insurance company, and although they are looking out for you (or at least you hope they are), their job is to keep you from switching to another carrier.
On the other hand, an insurance broker is someone who acts as a go-between for businesses and insurance companies. Once you contact a business insurance broker and let them know what you need, they will search and find the best policies for your consideration.
Brokers typically have access to dozens of carriers, and can quickly find several policies for you to consider. Remember, you do not have to pay for the services of a business insurance broker; the insurance company you end up doing business with pays the broker a commission.
A good insurance broker knows the industry, and can begin searching for additional insurance plans for you to consider. They know the procedures and processes of the various companies that offer coverage, and can cut through the red tape and interpret the jargon found in most contracts.
If you are not sure which insurance broker to contact, check with friends and other business associates to see who they are using. And don’t forget to check for referrals from your local chamber of commerce. If you hear good things about one particular insurance broker from lots of different people, look up him or her. There’s nothing like a good old fashioned word of mouth referral.
You have invested time and money in your small business, so make sure that your insurance coverage is up to date. Your bottom line, and the future of your company, may depend on it.