Shopping around for an insurance policy of any type can be a confusing experience, but when it comes to providing proper coverage for a small business, it is important to get things right. For that reason, anyone who is considering what type of small business insurance to purchase should ensure that there is a trustworthy broker involved who can answer tough questions and provide expert advice throughout the process. Following the simple steps outlined below can help anyone in this position find the best broker for the particular needs of the small business and its owner.
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1. Try to Find a Reputable Referral
The best way to choose a great small business insurance provider like TruShield Insurance often involves building on the experience of others in a similar position. This can involve discussing the options with trusted colleagues and other entrepreneurs in the same region or who work in a similar industry. Since there are specific factors that can determine what type of insurance policy will be needed, it is a good idea to focus on those referrals that are most appropriate to an individual scenario. For example, someone who is operating a small construction business might not need or want the same type of coverage as an architect opening a specialized firm.
If it is impossible to find a trusted individual with worthwhile advice to share, it is possible to start the process out online. Simply browse some of the available options in the area and begin checking out their respective reviews. While it is impossible to get a comprehensive picture of an insurance provider based on just a handful of positive or negative reviews, it might help to look for possible red flags or evidence that a few select companies offer rates and coverage that would be appropriate for the particular situation.
2. Think About What the Business Might Need
Since there are so many unique factors to consider when putting together a proper small business insurance plan, it is crucial to spend plenty of time planning for any possible scenario. Companies with employees likely need some type of worker’s compensation coverage, and any rented or mortgaged property is sure to require insurance that will cover damage, theft, or any other issue that could negatively affect the value of the real estate.
Additional issues to think about include whether a plan will address cyber attacks such as a data breach or if a policy will pay out in the event that a small business is forced to temporarily shut down due to an emergency situation. Comprehensive coverage is key, so be sure not to leave any stone unturned when developing a great path forward.
3. Prioritize the Experience of an Agent or Broker
Even the most highly recommended provider with excellent reviews might not be the appropriate choice for every small business. For instance, if an insurer is only experienced in finding plans for individuals or families, the individual might not have the experience and confidence necessary to secure the right plan for a company’s needs. There are a number of unique characteristics that make small business plans quite different from other insurance policies, so entrepreneurs will be best served by ensuring that whichever insurance provider gets picked as the top contender has lots of relevant experience and expertise in the appropriate field.
4. Determine Whether an Agent or a Broker Is Best
At first glance, it might appear that the two terms are interchangeable, but there are some fairly important distinctions between a small business insurance broker and an agent. Although both professionals can be trusted to find the right plan, they will likely go about the process in somewhat different ways.
The most important difference lies in the fact that agents, for the most part, will be working with a particular insurance company or carrier. This means that he or she will probably know all of the ins and outs of the various policies that the company offers and will thus be in a great position to help a small business owner choose the one that is most appropriate for their needs. Anyone who is particularly fond of a specific carrier will likely want to choose an agent to handle this process.
On the other hand, an insurance broker is probably free to shop around for policies being offered by a range of carriers. This could be the best option for an entrepreneur who wants to find the best price and is not too picky about which company is responsible for underwriting the policy.
In reality, there are clear pros and cons with either choice. At the end of the day, however, going with a reputable company with a long history of providing excellent service and great coverage will represent the biggest step toward finding a policy that will pay off if and when a business owner needs to file a claim of any type.