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A Quick Guide to Buying Business Insurance

iStock_000008633067SmallWhether you’re just opening your doors, or have been operating your business for years, you already know that you will need some forms of insurance for your business. In order to best protect your company, as well as your bottom line, check out this quick guide to shopping for business insurance.

Know your risk. Insurance companies base their rates on the probability that you will need to file claims, so a higher risk will usually translate to a higher insurance premium. Understand in some cases you may be able to take steps to make your business a safer prospect for insurance companies.

Also, understand that while a higher deductible translates into a lower premium, signing on for a high deductible also means more financial risk for you. Analyze the level of risk you’re willing to take with regard to out-of-pocket expenses.

Compare rates. As with any type of insurance policy, you’re likely to receive varied quotes from different insurance companies. Shop around for insurance, or consult with a broker who works with several companies to find the best rates.

Understand saves money, but it isn’t right for every business. Carefully review a business owner’s policy to be sure it fits your needs.

Regularly review your coverage. Your business will change as it grows, and so will your insurance needs. Review your business insurance policy once per year to be sure your coverage still matches with your business operations.