5 Commercial Insurance Secrets Everyone Should Know About

Commercial insurance is insurance designed for your business. It includes four main categories of coverage, including property insurance, general liability insurance, commercial automobile insurance, and umbrella insurance. Umbrella insurance is additional liability-type insurance coverage in case a claim exceeds your liability insurance limits. Before you start shopping for commercial insurance for your business, you should know these five money-saving secrets.

1. Shop and Compare

Just because you have always been able to get a great deal on your private auto or homeowner insurance policy from your neighbor doesn't mean that particular insurer will be the best choice for your commercial coverage. Shop and compare policy prices to make sure you get the best deal. Shopping online for commercial insurance will allow you to quickly obtain quotes from several different insurance providers to determine your best option.

2. Tailor Your Insurance Policy

Commercial insurance is not one size fits all. Your insurance coverage requirements will depend on many variables. It pays to do a little homework up front before shopping for insurance.

  • Do you own your own property?
  • Do you have customers who come to your work site?
  • How many employees do you have?
  • What kind of inventory do you have to carry?
  • Is there any special equipment you have to maintain?
  • Do you have vehicles to cover?
Knowing what kind of coverage you need can help you keep the costs down on the policy you choose. Only obtain coverage that fits your business and industry.

3. Conduct a Risk Assessment Before You Shop

Before you start shopping for a policy, conduct a risk assessment for your business. Determining your risk awareness can demonstrate to your insurer that you are actively mitigating risk in your business and reduce your rates. It will also prevent you from being taken advantage of by unscrupulous insurance providers who determine a higher risk than you actually have.

4. Establish and Maintain Good Credit

To obtain the best rates on your commercial insurance policy, pay your bills on time and establish trade credit. The better your commercial credit, the lower your commercial insurance rates can be.

5. Seasonal Fluctuations

Don't pay for insurance when you don't need it. If you are in a seasonal business, shop for a policy that will allow seasonal adjustments or coverage. Why spend money insuring your business in the off season when you can use the savings to invest in business growth.

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