A business insurance quote is an estimate of what an insurance company will charge you for a specific type of insurance policy.<\/p>\n\n\n\n
Business insurance covers your business from unexpected losses e.g. if your equipment is stolen or you make a mistake and your clients decide to sue. As a business owner, self-employed consultant, or freelancer, you need to factor in certain risks in your day-to-day work. Depending on your profession you may need public liability insurance, professional indemnity insurance, contents insurance, or other types of cover. <\/p>\n\n\n\n
Business insurance is designed to protect you from the risks associated with running a business. It’s a catch-all term to describe a range of covers that protect your business from the risks it faces. <\/p>\n\n\n\n
Whether you\u2019re a sole trader, running a partnership, or a limited company, you’ll want to think about your business’s set of risks, and whether you want to cover them.<\/p>\n\n\n\n
General liability insurance covers common business risks like customer injury, customer property damage, and advertising injury. It protects your small business from the high costs of lawsuits and helps you qualify for leases and contracts.<\/p>\n\n\n\n
This business liability insurance coverage pays for legal costs if a customer trips and suffers an injury at your business, or if you accidentally damage someone’s property. This policy also covers personal and advertising injuries, such as libel and copyright infringement.<\/p>\n\n\n\n
Cyber liability insurance, also called cybersecurity insurance, protects small businesses from the high costs of a data breach or malicious software attack. It covers expenses such as customer notification, credit monitoring, legal fees, and fines.<\/p>\n\n\n\n
A cyberattack isn’t just an inconvenience \u2013 it can put you out of business. Cyber insurance coverage helps your business recover from financial losses caused by cyberattacks and data breaches. It can pay for credit monitoring, attorney’s fees, fines, and other costly expenses.<\/p>\n\n\n\n
Also referred to as business hazard insurance, commercial property insurance pays to repair or replace stolen, lost, or damaged business property. It covers your business\u2019s physical location and other assets like equipment.<\/p>\n\n\n\n
Commercial property insurance protects against the risks of owning or renting an office, storefront, or other business property. It covers property losses when a fire damages your office, or a pipe bursts and floods your store.<\/p>\n\n\n\n
If you provide professional advice or services to clients, you likely need this policy.<\/p>\n\n\n\n
Errors and omissions insurance (E&O) helps cover the cost of a lawsuit if a client claims your work was inaccurate, late, or never delivered. It\u2019s sometimes called professional liability insurance. Your clients might require errors and omissions insurance in the terms of a contract. And it\u2019s strongly recommended for professionals who make a living off their expertise.<\/p>\n\n\n\n
This policy will cover legal defense costs related to the lawsuit, including court costs, settlements, and judgments. You\u2019ll typically pay a deductible, and your insurance provider will pay legal expenses up to your coverage limit.<\/p>\n\n\n\n
If your company owns a car, you will very likely need commercial auto insurance. It covers legal bills, medical expenses, and property damage if a business vehicle is involved in an accident.<\/p>\n\n\n\n
You can rely on commercial auto insurance for financial protection if you or an employee needs medical care or faces legal expenses due to an automobile accident. If you don\u2019t carry commercial vehicle insurance, your business will be responsible for any medical bills and legal fees, which can get expensive.<\/p>\n\n\n\n
If you own or rent a workspace, you likely need a business owner\u2019s policy (BOP).<\/p>\n\n\n\n
A business owner\u2019s policy (BOP) bundles general liability insurance with commercial property insurance. It typically costs less than if the policies were bought separately. Most small businesses need general liability insurance and commercial property insurance when they rent or own an office or other commercial space. On top of that, client contracts often require general liability coverage.<\/p>\n\n\n\n
Even when coverage isn\u2019t required, a BOP is a wise choice for small businesses that work directly with the public and own valuable business property. This policy protects against financial losses from customer accidents and incidents like fires and burglaries.<\/p>\n\n\n\n
Workers\u2019 compensation insurance covers medical costs and lost wages for work-related injuries and illnesses. This policy is required in almost every state for businesses that have employees. It covers costs related to workplace injuries and illnesses, which can escalate quickly due to the high cost of medical care.<\/p>\n\n\n\n
While workers\u2019 comp laws vary by state, small businesses typically need a policy in place as soon as they hire their first employee (or a certain number of workers). Even when not required by law, this policy provides important protection against healthcare expenses and employee lawsuits related to workplace injuries, such as a slip and fall in the office, an injury from tools or machinery, or an occupational illness.<\/p>\n\n\n\n
You can also rely on workers\u2019 comp if you or an employee needs medical treatment or time off due to a workplace injury \u2013 or if an injured employee sues you for failing to prevent an accident.<\/p>\n\n\n\n
If you don\u2019t carry workers\u2019 comp insurance, your business will be responsible for any medical bills and legal fees. And most states levy costly penalties for noncompliance.<\/p>\n\n\n\n
Even the most experienced and thorough professional service provider makes mistakes. Unfortunately, clients may not be so understanding if your error costs them considerable time or revenue.<\/p>\n\n\n\n
Professional liability insurance, also called errors and omissions insurance, protects small businesses against the costs of client lawsuits over unsatisfactory work. It is designed for businesses that make a living off their expertise and helps protect you from lawsuits filed by unsatisfied clients.<\/p>\n\n\n\n
Business owners who purchase commercial umbrella insurance usually need it to fulfill a contract that requests higher than standard policy limits. Once a policy\u2019s limit is reached, commercial umbrella insurance provides additional coverage for liability claims made on general liability, commercial auto, or employer\u2019s liability insurance.<\/p>\n\n\n\n
Commercial umbrella insurance offers extra liability coverage for the most expensive lawsuits. For example, if a covered lawsuit maxes out your general liability insurance policy but you still owe money for damages, business umbrella coverage can provide additional funds to make up the difference.<\/p>\n\n\n\n
Umbrella liability insurance can supplement your coverage provided by:<\/p>\n\n\n\n
Commercial umbrella insurance can boost coverage for any (or all) of these policies in $1 million increments. Before you can purchase umbrella liability insurance, however, an insurer will require you to carry a certain amount of coverage for the underlying policy.<\/p>\n\n\n\n
Insurance agents are licensed professionals who shop for insurance on your behalf. They should be able to tell you what kinds of coverage you need, get quotes for you and help you compare options.<\/p>\n\n\n\n
Some agents work with just one insurance company and can\u2019t sell policies from any other company. On the other hand, there are also independent agents who can sell policies from many companies. You\u2019ll explain what your business does; they\u2019ll figure out what policies you need and get quotes from a few carriers. Then, you can work with them to pick the right policy for you.<\/p>\n\n\n\n
Insurance brokers and agents typically receive payment on commission, so it\u2019s essential to find someone you trust. <\/p>\n\n\n\n
However, if you already know that you want to work with a specific company or need a particular policy, it may be easier to get quotes from companies directly. You\u2019ll have to input your data repeatedly to get quotes from each provider. But for most businesses, this process should take only a few minutes.<\/p>\n\n\n\n
Getting business insurance is as complex as everything else associated with running a business. Because so many factors determine your insurance needs, risks, coverages, and costs, insurance companies need a lot of information before they can provide your policy.<\/p>\n\n\n\n
Before you apply, let\u2019s go over what you will need so the process will be as smooth and efficient as possible.<\/p>\n\n\n\n
To get an accurate quote on your business insurance, your agent or carrier will need to have a good understanding of your business operations. Depending on your industry, you will be asked a variety of questions. <\/p>\n\n\n\n
If you don\u2019t know the answers right away, that\u2019s OK. However, it is always best to go into the application process with a good understanding of your operations so you don\u2019t have to seek answers and extend the process. Being as specific as you can will ensure that your agent knows exactly which insurance companies are willing to provide quotes based on operational exposures alone. <\/p>\n\n\n\n
In addition to questions about your business operations, you will need to answer questions about yourself, specifically regarding years in business and years of experience. The carrier wants to know about the owners and sometimes the employees to better analyze risks and determine your quote.<\/p>\n\n\n\n
The better your resume, the better the chances of getting a lower quote. <\/p>\n\n\n\n
If you use any contracts with clients, you\u2019ll likely be asked to provide a sample of one for the insurance company to review so they can make sure you have the proper controls built into your contract to protect your business against potential claims or lawsuits.<\/p>\n\n\n\n
If you don\u2019t have a contract, but provide any type of professional or other services, you may be asked to get a contract written before you can obtain a quote. <\/p>\n\n\n\n
Your insurance agent or carrier will ask about your business\u2019 estimated annual revenues, payroll, subcontracted costs, business property, and inventory levels. So, be prepared to provide numbers.<\/p>\n\n\n\n
Keep in mind that these figures are based on your policy term, which may or may not coincide with your fiscal period. <\/p>\n\n\n\n
You don\u2019t need to provide any proprietary reports, but you do want to give your best estimate of these numbers based on the policy term. This is because your policy may be audited at the end of the policy term and you could be penalized if your projection was incorrect.<\/p>\n\n\n\n
While not necessary to quote, having copies of your existing policies can help the insurance agent review what you have and identify any areas where you may have gaps in coverage. And let\u2019s be honest, a lot happens in a year. Reviewing your existing policies may trigger a reminder to add or remove equipment, vehicles, etc.<\/p>\n\n\n\n
You will need to provide copies of your \u201closs runs\u201d. This is a fancy insurance term for a report that shows any insurance claims that have been filed for your business. Most insurance companies will want to see a minimum of 3 to 5 years of claims history from all of your policies. <\/p>\n\n\n\n
The insurance agent you are working with can help you draft a letter to request these reports from your existing insurance agent. However, you should know that this step can delay the quoting process significantly if you are unable to get the reports. <\/p>\n\n\n\n
Even after providing all of the items outlined above, you may be asked to complete an application. Thankfully though, much of what you\u2019ve already provided can be filled in ahead of time, leaving you with only a few unique operational questions and industry-specific questions left to answer.<\/p>\n\n\n\n
The method you use to find insurance will determine how long it takes to receive quotes:<\/p>\n\n\n\n
Most business insurance policies use standard forms, making them pretty similar. But be mindful of some differences. For instance:<\/p>\n\n\n\n
If you\u2019re seeking coverage for a specific risk, ask the insurance company directly. You may benefit from working with an independent agent who knows the details of policies from many insurance companies and can help you choose the right one.<\/p>\n\n\n\n
You\u2019ll want to consider the performance of the insurer itself as well. Here are some places to look when comparing business insurance companies:<\/p>\n\n\n\n
It\u2019s easy to tell which of your insurance quotes offers the lowest premiums. But make sure you also consider:<\/p>\n\n\n\n
The type of business insurance quote you need depends on many factors e.g. the activities your company undertakes, any previous claims, the size of your company and if you aren’t working alone you may need employer liability insurance. It doesn’t matter if you work from home, in a busy office, sell products online, or offer your services face-to-face, there are risks associated with every type of business. Mistakes can happen, equipment might get damaged and clients can accuse you of negligence.<\/p>\n\n\n\n
Small businesses often aren’t prepared for large, unexpected expenses due to a claim, so it’s important to have the right insurance in place. If you’re self-employed and something goes wrong, you’ll be the one responsible for footing the bill.<\/p>\n\n\n\n
A quote is different from an insurance premium.<\/p>\n\n\n\n
A quote is a preliminary indication of what an insurer might charge you, based on your application. The premium is the amount you end up paying for a policy, which could be higher or lower than your quote.<\/p>\n\n\n\n