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How to buy business insurance

5 Tips for Buying Small Business Insurance

You’re a business owner — and for that, you should feel proud and accomplished. One of the most important decisions you’ll make is buying business insurance. After all, it can help to protect your business from unexpected costs due to accidents or damage to your business property. The more you know about your coverage options, the better you can protect your small business.

Our five tips for buying business insurance will help you better understand what you need — in order to best protect the dream you’re working so hard for every day.


1. Understand Your Risks

Your business has risks that are unique to your industry. Knowing what those risks are can help you plan for what insurance coverages you need to protect your business when the unexpected happens. Start by considering what can damage your business — financially or physically — and seek out coverage based on events that are most likely to occur. These can include:

  • Accidents
  • Lawsuits
  • Disasters like tornados or fires

2. Know Your Legal Requirements

Your business may be legally required to buy certain types of insurance. This will depend on certain factors like your industry and the state you operate in. A good place to start researching small business insurance legal requirements is your state’s Department of Insurance website. An insurance agent may be able to help you with this too.

3. Find the Right Insurance Agent

The benefit of working with an insurance agent is they’ll understand exactly what your business needs. Finding the right insurance agent means finding one that understands your needs as well as your vision and dreams. Most importantly, make sure you’re confident in your agent’s ability to understand your business and your business exposures so they can provide the best insurance solutions to your business problems. You and your business deserve the best — that includes an agent you can trust and confide in.

Look into different trusted agents, and once you think you’ve found a match, get in touch with them.

How to prepare for meeting with an insurance agent

You have flexibility in how you can contact an insurance agent, get a quote and purchase your business insurance. Getting a hold of an agent and quoting online is an easy process, but you can also opt to meet with an agent in person or over the phone if preferred.

The more you know about your business and the industry you’re in, the more your agent can help you select the right coverage. Be ready for your first meeting with your agent by preparing list of details about your company. This list should include:

  • Business type
  • Financial records
  • Ownership interests
  • Property information
  • Number of employees
  • Comparable businesses nearby
  • Potential risks and liabilities

An assessment of your assets, risk and liabilities will be used to build your policy. So, the more detail you can share with your agent, the more accurate and effective your coverage will be.


4. Determine What Coverage Your Small Business Needs

Your agent will be key in determining what insurance coverage is right for your business, but it’s important to know what the common small business coverages are and how they protect your business. Not having the right coverage down the line can put your entire business at financial risk, so be prepared and make sure your business has the coverage it needs.

Below are some coverages you’ll likely need as a small business owner. There are even more types of business insurance coverage that can help you protect your dreams, though. Learn about other common types of business insurance coverage solutions.

Building coverage

If your business is located in a building you own and it is damaged, property coverage works hard to help you regroup and restore. This coverage will also help cover the loss of income and extra expenses you incur while repairs are being made.

Business personal property coverage

Personal property coverage makes sure the equipment that drives your business — computers, copiers, tools, etc. — is protected in the event it is stolen or damaged due to a claim.

Business liability protection

Accidents happen. This coverage provides protection if a customer is injured at your business. For example, your business will be protected if a customer trips and falls at your business and incurs hospital expenses.

Commercial liability umbrella policy

This policy adds another layer of protection to your primary business liability coverages — by giving you extra security against legal and financial incidents that could jeopardize your business dream.

5. Get an Annual Insurance Review for Your Small Business

As your business grows, your insurance needs change. And those shifts in finances — especially when profits are on the rise — should be updated and reflected in your business insurance policies every year.

Annual insurance reviews help ensure you’ll always have the right coverage for the needs of your company. And by keeping a close eye on your evolving insurance needs, you’ll be better prepared for the unexpected and unplanned.

Protect Your Small Business with American Family Insurance

American Family knows small business. We’ve been protecting businesses like yours for more than 40 years. We’ll not only provide you quality business coverage, but also be by your side with insights and advice that can help your business avoid risk.

Take the first steps in protecting your business from the unexpected. Talk to an agent and get a quote today.


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Related Topics: Safe Business Tips , Business Insurance