Things To Consider When Shopping For Business Insurance

Things To Consider When Shopping For Business Insurance



If you’ve ever stood in​ the​ cold remedies section of​ a​ drugstore or​ grocery store,​ perplexed by the​ sheer number of​ choices,​ you​ have taste of​ what it’s like to​ shop for business insurance. in​ an​ attempt to​ be all things to​ all people,​ the​ insurance industry has created a​ seemingly limitless variety of​ insurance offerings,​ most of​ which you​ don’t want or​ don’t need.

But you​ must have decided that you​ want something,​ or​ you​ wouldn’t have chosen to​ read this article. How do you​ make intelligent business decisions when it​ comes to​ insurance coverage for your business and your employees? It’s no small task,​ but with some careful thought and the​ suggestions offered here,​ you​ can intelligently weigh the​ options.
The first part of​ this article is​ intended for readers shopping for insurance as​ employee benefits. if​ you’re more interested in​ purchasing insuring for your business,​ skip to​ “Insuring your business.”

Call an​ Expert

If you’re an​ employer or​ business owner,​ you​ probably have more urgent,​ value-add activities than researching insurance. if​ you​ do,​ it​ makes good business sense to​ call a​ Professional Employer Organization (PEO),​ such as​ Workforce Solutions,​ to​ discuss your insurance needs. a​ PEO provides all the​ services you​ would expect an​ internal Human Resources department to​ provide,​ including benefits administration,​ but it​ is​ a​ separate entity from the​ organization to​ which it​ delivers these services. PEOs deliver expert and efficient employee-related administration,​ sharing the​ responsibility and risk of​ managing workers. They can assess the​ insurance needs of​ your employees and shop for a​ package that meets them and that you​ can afford.

Know What You’re Looking For

Before you​ can accurately determine the​ cost of​ insurance,​ and before insurers’ quotes will be meaningful for you,​ you​ need to​ determine the​ kind of​ coverage you​ need. And that means knowing something more about your employees than you​ might already know. What kinds of​ insurance do they need and what do they already have? What coverage will be most important to​ them ten to​ twenty years in​ the​ future?

While this type of​ information may not be readily available—and it​ may be illegal for you​ to​ ask questions that would help—you can discern a​ great deal about your employees’ insurance needs merely from demographic information. Older employees are more likely to​ need long-term disability insurance or​ health plans with greater lifetime maximum benefits. Younger workers will be more concerned about family coverage and manageable co-payments and deductibles than about their long-term needs. Similarly,​ life insurance appeals more to​ workers over the​ age of​ 35 than to​ employees just entering the​ workforce.

If your business is​ in​ a​ large urban area where most employees use public transportation,​ group discounts on​ auto insurance will be less attractive than they would be in​ rural or​ suburban settings where most employees drive to​ work.

Your insurance benefits package can’t be tailored to​ meet all the​ needs of​ every employee,​ but you​ can learn in​ broad terms what types of​ insurance hold the​ broadest appeal to​ your workforce.

Insuring your Business

As with the​ employee benefits side of​ insurance you​ have a​ sometimes bewildering array of​ choices when it​ comes to​ deciding whether and how to​ insure your business. However,​ at​ least one part of​ that question—whether to​ insure—should be fairly easy to​ answer. Insurance is​ a​ basic risk mitigation tool. Simply stated,​ insurance another entity’s promise,​ in​ exchange for your payment,​ to​ step in​ and support you​ financially if​ certain risks become reality. to​ decide whether you​ need insurance,​ simply determine the​ risks to​ which your business is​ subject,​ assess what it​ would cost if​ the​ risks were realized,​ then ask yourself if​ you​ have the​ resources on​ hand to​ cover those costs. if​ you​ do not,​ you​ need insurance.

Common risks for which business insurance is​ sought include:
• Legal liability
• Loss of​ property due to​ theft,​ fire,​ or​ acts of​ nature
• Loss of​ life of​ key decision makers
• Loss from business interruption
• Automobile insurance for company vehicles

Choosing appropriate and cost-effective insurance is​ not as​ simple,​ as​ determining that you​ need it,​ but it​ helps to​ remember that all insurance is​ a​ guarantee of​ recovery in​ the​ event of​ loss. it​ is​ up to​ you​ to​ determine what property,​ persons,​ and/or security you​ cannot afford to​ lose or​ replace and insure accordingly.

Liability insurance is​ a​ typical example of​ insurance coverage for businesses. Most businesses incur some risk of​ litigation in​ the​ daily conduct of​ business. a​ liability insurance policy assumes some of​ that risk so that if​ a​ policyholder is​ sued while conducting business,​ the​ policy provides financial relief according to​ terms the​ insurer and insured have agreed upon.

What to​ Consider

With these fundamentals in​ mind,​ it​ should be clear what you​ need to​ think about in​ connection with your insurance coverage:
What assets should I protect from loss? Your business probably owns assets in​ the​ form of​ equipment or​ property that are required for your business to​ function. These are the​ assets you​ should protect with insurance.

What types of​ loss should I insure against? the​ nature of​ your business and your geographical location will introduce business-specific risks,​ and your insurance provider can help you​ determine what those are. in​ addition,​ remember that no business is​ immune to​ loss from fire or​ theft,​ no matter the​ location or​ industry.

Many small businesses are relatively low-risk ventures; they operate office equipment in​ a​ stable environment and do not have exceptionally valuable property that requires coverage. Because these businesses are so common,​ insurance carriers have created a​ package of​ standard coverage that usually meets the​ needs of​ these organizations. Called a​ BOP,​ or​ Business Owner’s Policy,​ the​ package typically covers property and liability as​ well as​ loss due to​ theft or​ vandalism. you​ can most likely also add other types of​ coverage based on​ your specific business needs. if​ you’re shopping for insurance for your business,​ ask your agents about BOPs. it​ will probably save you​ a​ great deal of​ legwork.

Choosing an​ Insurer

Allstate has good advice in​ this regard. it​ suggests that you​ search for a​ company willing to​ work with you​ individually to:
• Review your current coverage
• Identify gaps in​ your business insurance and where your firm could be at​ risk
• Understand your options,​ as​ well as​ their insurance products and services
• Protect your business or,​ if​ disaster does strike,​ help you​ through the​ claims process

This is​ sound advice. Also remember that a​ PEO like Workforce Solutions can do all of​ the​ heavy lifting for you. Their staff has the​ insurance expertise you​ or​ your business might lack and work with large numbers of​ insurance providers to​ help get the​ coverage you​ need at​ a​ reasonable price. if​ you​ choose not to​ work with a​ PEO,​ you​ can get a​ lot of​ help from a​ high-quality agent or​ broker. She can help you​ assess your insurance needs and will shop for the​ best coverage.




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