7 Questions to Ask Before Buying Commercial Insurance

75% of businesses are underinsured across the board. That means when they run into issues, they aren’t covered and have to come up with the costs on their own.

Most companies don’t have a ton of extra money lying around to handle these unexpected (often expensive) expenses, and that’s why commercial insurance is so important.

Finding the right policy for your business is important, so we’ve put together seven questions you should ask before getting a commercial insurance policy.

1. Do I Need Commercial Insurance?

There are many types of business insurance, and some are required by law. Those typically include unemployment insurance, workers’ compensation insurance, property insurance, and disability insurance.

Those business insurances are a good start and might get you through some issues, but having a commercial umbrella policy will guarantee you are covered.

Unforeseen and unpredictable events can occur at any time. It would be terrible to have a disaster happen only to find out the damage won’t be covered through your current policy. The time to get coverage is when things are going well.

Beyond bringing confidence to you about your company’s ability to pull through hard times, having a good insurance policy is also a good sign to others. Investors, lenders, and potential clients often look to see if their investments will be safe with a company through their insurance policy as well.

2. How Much Will Commercial Insurance Cost?

One of the most important questions you need to ask before signing up for a commercial insurance policy is how much it will cost. A business’s budget is crucial for their survival.

The cost will vary depending on the insuring company you’re using and the specifics of the policy.

Generally, using the same company for all insurance types will get you a discounted rate. There are several payment options available that can help make it as affordable as possible.

The coverage is often worth the cost, but it’s important to make sure it’s realistic before signing up.

3. What Is Actually Covered By My Insurance?

All the different types of insurance you can have for your business can be overwhelming and confusing. So it’s important to make sure you understand fully what will be covered by a commercial policy and what won’t be.

Commercial insurance will generally cover a wide range of issues as a kind of catch-all behind your original policies.

That coverage extends to property damage, theft, lawsuits, liabilities, issues with employees, and other business expenses. The specifics may differ based on actual policies.

Owning a business is a big risk with many potential issues, so a commercial insurance policy often eases worries about many of those.

4. How Do I Submit A Claim?

Every insurance company works differently with their customers when sorting through claims. Understanding your specific company’s procedures and policies before signing up can save you a lot of headaches in a crisis.

If an issue arises where you will need to cash in on your policies to fund relief or repairs, you need to move as quickly as possible.

When you already know how to get in contact with your agent and submit a claim, you can move much faster. It’s also helpful to have a realistic view of the timeline for getting those funds.

A little foresight can help tremendously in a crisis.

5. Will There Be Any Gaps In My Coverage?

Surveys show that most businesses choose to go without any insurance. This leaves them open to many potential issues and financial strain.

Even when a business has some insurance, they may leave themselves vulnerable through gaps in that coverage. It’s hard for the average person to see those gaps in their coverage. So having a professional insurance agent look over your policies can unveil any potential gaps.

The best part about commercial insurance is that it normally covers any gaps left by your standard business insurance policy.

Often the commercial insurance will kick in after you’ve exhausted your other policies’ coverage. Meaning that it will cover whatever the others’ don’t, which is a huge relief.

6. Will My Rates Ever Change?

Since a business’ budget is so important, you’ll want to make sure that your policy rates won’t just change on you unexpectedly.

Insurance companies reevaluate their customers’ policies regularly. This allows them to gauge their investment and level of risk. From this evaluation, there is often a slight change in the price for coverage (up or down).

While this is normal practice, you’ll want to know when it happens and how often so you can prepare.

You’ll also want to know what factors could influence a change and what you could expect after certain events. All of these things will just help you have a clear picture of what will likely happen and reduce any surprises.

7. How Do I Get Insurance Coverage?

Getting insurance coverage is normally a pretty straightforward process for most businesses, but occasionally, there are a few things that have to be completed beforehand.

If you’re shopping around for the right policy for your business, it’s helpful to know what’s required so when you make a decision, you can act quickly to get covered.

It’s also very helpful to know if you can change your policy and coverage at any time. A business is always evolving and changing, so you may need to switch up your insurance with those changes. Understanding if that’s possible, what it might cost, and how to do that is a good place to start.

Be Prepared To Get Commercial Insurance

Having the right commercial insurance policy in place for your company will bring you peace of mind and confidence moving forward.

There’s nothing better than knowing if something devastating comes up, you’ll be able to weather the storm and come out on top. Commercial insurance provides you with the resources to do that.

If you’re ready to get started looking at policies and getting coverage, contact us today!