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Researching business insurance online prior to speaking with your insurance agent will prepare you for negotiations. When you are conducting your search, make sure to follow these guidelines.
Look at a Sample Policy
It is best to look at a business insurance policy in your industry to familiarize yourself with coverage and terms. Most insurance policies have universal structure, though. Look for a sample policy online. If you do not find one, you can even use your homeowners’ policy to understand how your business policy will work. Look for common property coverage such as windstorm or theft. Find out the order in which coverage is listed. For example, exclusions are often located toward the end of the policy. There may be an addendum that lists definitions for terms like “act of God.”
Research Industry Terms
After reviewing a policy, make a list of terms you are unfamiliar with. A general online business insurance inquiry will also likely provide you with common terms. Read a few articles or industry blogs and jot down words you need clarification on. Do you know the difference between a deductible and a self-insured retention? There are insurance dictionaries readily available to explain these terms.
Ask Your Network
A professional network can be a great place to find common pitfalls in insurance policies. Send an email to your associates in the same industry if possible. Use a professional association’s online discussion board to post questions that are industry-specific. For example, if you belong to a network for individuals who own a home business, ask about tax-deductible policies. You will likely get at least a few responses that will teach you better questions to ask.
Use Reputable Companies
You may find low quotes from little-known companies on the Internet. Reputable companies will ultimately protect you better when you need to make a claim. If there is no contact information on the site, steer clear of it. The AM Best rating for an insurance company will be a good guide to that company’s viability. Aside from AM Best, you can research the company’s URL to determine simple facts. How long as the URL been registered? Is it registered in the same country or state as the insurance company claims to be incorporated in?
Follow Up With a Phone Call
You should have questions after your online research. Once you have determined the questions you cannot answer on your own, place a phone call. You should place the same call to 3 or 4 different insurance companies. Once you have developed a comfort with the answers from one or two companies, you are on your way to acquiring a business insurance plan that works for you.
