Acquiring affordable business owner’s insurance that adequately covers your biggest potential risks is a process that takes some time and effort on your part, but the resulting security is worth it. Business insurance includes a diverse set of over a hundred coverage components while other types of insurance involve only a few. Auto insurance, for instance, only has five coverage components. This means that for proper coverage, each business requires a customized approach to analyzing its insurance needs. It’s a smorgasbord as opposed to a vending machine!
To help your insurance agent understand your business, prepare a one to two page description of your background, experience and scope of operations. The agent will use this information to weed out underwriters who have little interest in your type of business.
The insurance agent can help with this, but if you have done a thorough job with safety precautions (see above), then you have a good idea of what risks your business is exposed to. Make a list of these risks, whether or not they are insurable, from most serious to least.
Armed with relevant knowledge of your business from the above steps and knowledge of the insurance industry, your agent will organize specifications for quotation and identify desired options. These specifications are transcribed into insurance policy applications.
Ideally, your agent will list each suggested coverage, including its particular cost factor, in order of the catastrophic potential that risk represents to the business. This way, you can make educated decisions about adding to or cutting back coverage to achieve the best cost/benefit balance.