You’ve got your business up and running smoothly, and all of your hard work is finally starting to pay off. The busier you get, the more comfortable and stable you feel. Many business owners forget about business insurance all together, thinking their type of business doesn’t need it, or that it’s too expensive. Commercial insurance is one of the most important investments a business owner can buy.
Finding the right commercial insurance policy is extremely important, and depending on what type of business you’re in, rates can fluctuate greatly from one insurance company to the next. The first thing you’ll need to do when looking for the best policy for your company is to get a little educated. Understanding what coverages are offered by the different companies you are looking at is important.
Whether or not an insurance agency will choose to insure you (and at what cost) mostly depends on how much risk your company is subject to. Insurance underwriters look at your business as well as the industry in general to determine the level of risk involved with your business. Then they will decide whether or not they will cover your business, and if they will, what amount of premiums are required in order for them to do so.
Every commercial insurance policy has two parts to it: the premium and the deductible. The premium is the amount of money you will have to pay the insurance company in order for them to provide you coverage. An insurance company uses multiple complex calculations to figure out the risk factors such as where your business is located, proximity to fire and police protection services, the type of building your business is in, and what kind of insurance policy you are buying for your business.
The deductible is what you, as the business owner, will have to pay on top of your premium in the case of a covered claim. So if there was a fire, and fires are covered under your policy, there would be a deductible that you would have to pay the insurance company before they will provide the funds to fix the damage. Typically, the higher you deductible is, the lower your premium will be.
A expert business insurance agent can help you decide how much coverage your company will really need to give you peace of mind while conducting your business on a day to day basis. Vern Fonk Insurance Agents are all extremely qualified and ready to help you with all your commercial insurance questions.