Business Insurance > resources > Buying Decisions

Business Insurance Buying Decisions

We have put together a list of things you should consider when buying or renewing your business insurance policy.

Talk to your insurance agent

Keep in close touch with your agent. Make sure he or she explains exactly how your premium is calculated. There may be several ways you can lower your rate.

You also need to keep your agent informed regarding changes to your business. You wouldn't be too happy if you had an insurance claim that wasn't covered because your agent was not aware of a new exposure. An example of some of the insurance related events that could impact your coverage are:

• A new location.
• A new employee.
• Additional equipment.
• Addition on your existing location.

Ask your agent for a list of things that could impact your rate (higher or lower). Keep these in mind as your business grows and changes.

Deductibles

Your insurance deductible. This is always an area that will affect your premium. The higher the deductible, the lower the premium, simple as that.

Business Interruption Coverage

Consider getting business interruption insurance so your business can survive during any 'down time' that occurs when a disaster strikes your business. Note: Make arrangements to use the facilities of another firm in the same line of work in case there is an interruption period.

Bundled Policies or Coverage

In most cases, it makes sense to buy a 'packaged policy', when available, rather than separate policies. In addition to the bundled discount you're likely to receive, bundled or package policies usually provide broader coverage.

Back up Your Data

Consider investing in a location that will back up your important files or at least hold them for you at an 'off-premises' location. With the dependence upon technology today, this is critical. Think of what would happen if all of your data was gone tomorrow. It can threaten your entire business. Anticipate that your technology will fail you and have a contingency plan in place.

Discounts

Be sure to ask your agent for all discounts that are available with the business insurance policy that you are purchasing.