A lizard lawsuit?
A restaurant patron was about to take a bite of salad. But then she found a dead lizard on top of the greens!
Media outlets quickly picked up the story. The restaurant owners began to wonder, was there a lawsuit afoot?
When you’re a business owner, you have to be ready to handle any liability issue. One way to protect your company is by having the best professional insurance coverage.
To help you choose the right liability insurance for your needs, we’ve created this short guide. So take a look. By the time you’re done reading, you’ll know how to find a policy that serves you well.
1. Who to Get a Professional Insurance Policy From
Who should you get a professional insurance policy from? Should you take your business to an insurance company or an independent agent? Both are good options, with their own pros and cons.
An independent agent is somebody who’s going to work with multiple brokers. They’ll have a variety of insurance providers that they can shop your policy around with.
The independent agent will choose the best provider for your situation based on the coverages you want. You’ll work directly with your agent and can easily switch providers.
Direct Liability Insurance Company
Thinking of going with an insurance company rather than an independent agent? A direct liability insurance company is going to be the sole provider.
The one insurance company you choose will be covering all of your liability needs. If there’s a rate increase with the insurance company, there won’t be any way around it.
On the plus side, having an insurance company means building loyalty perks over time. You’ll also have peace of mind knowing you’re working with a name-brand organization. For instance, the right Medical Insurance Specialists only operate out of professional offices with top reputations.
2. Know What Insurance Coverage You Need
There are a ton of different insurance options out there. For instance, an umbrella policy offers professional liability insurance, auto policies, commercial building policies, and the list goes on.
If you want to cover all of your bases, you’ll need a list of every coverage that you need. Reach out to a commercial insurance company or independent agent that can outline the coverages for you.
Prepare for Quotes
What does it take to get an insurance quote? The provider will ask for a few details about your business.
For instance, the official name of your business and the amount of time you’ve been in operation will affect your rate. You’ll also need all of the details about your employees. Prepare to discuss your line of work as well and whether or not you drive clients around.
The insurance company is also going to want to know if you have a claims history. Always be upfront since a background check will reveal all eventually.
3. Raise Coverage Limits for Little Cost
What coverage limits do you need? It depends on your company and the risk factors.
Coverage limits are the extent to which the policy will payout. For instance, if you have a liability limit of one million dollars, you’ll have up to one million dollars of coverage.
Having millions of dollars of coverage might sound expensive. However, there’s often a slight price difference between a few hundred thousand dollars and a million.
Jumping from $1- 2 million and beyond your rate may only go up a few dollars each month.
Shop Around
Play with different coverage limits as you get multiple quotes. It’s always worth your time to shop your policy around with multiple insurance providers. Find out what coverages they offer and their lowest and highest limits.
Get the agent’s recommendations on the limits you need. However, don’t solely rely on the insurance provider’s suggestion.
Get Professional Advice
You should also be talking to friends in the industry to find out what type of coverage they have. Sometimes insurance companies will offer you lower coverage limits to make the rate more appealing. But you don’t want to have the wrong limits if an accident happens!
Instead, stay safe and competent by getting expert opinions. Do a quick online search if you don’t have friends within the industry. Forums like Reddit, or even just a general Google search, will help your insurance research.
When it’s all said and done, it’s okay to go with whatever coverage limits the insurance provider suggests. However, the more research you do, the better your company will be.
You’ll be able to ask more intelligent questions during the quoting process. When the insurance provider realizes you know what you’re doing, they’ll go above and beyond to earn your business.
4. Get Liability Insurance Referrals From Colleagues
Finding out what coverage limits other people in your industry have is just the start. You should also find out who they’re covered by.
Referrals are one of the best ways to find an insurance provider that you can trust. Reach out to professionals in your industry and ask them about their liability insurance choices.
Once they realize that you’re simply looking for some advice, they’ll be happy to share their provider with you. They might even get a special bonus for bringing a new business.
5. Maximize Safety Discounts
Are you shopping for car insurance for your company? Often companies will have safety promotions in place. For instance, let’s say you’re buying liability insurance for your fleet of vehicles.
Instead of paying the total price, you could knock a few hundred dollars off your rate with the proper anti-theft setup. By being proactive about keeping your vehicle safe, it’s big.
Other safety discounts include safe driving records or taking defensive driving courses. No matter what type of liability insurance you need, it’s always a good idea to explore possible discounts.
Get a Fair Rate
Now, you can get an excellent deal for your professional insurance policy. Reach out to your colleagues today to find out who’s taking care of their insurance options.
After getting some insight into common coverages and pricing, you can begin collecting quotes. Be sure to get a few quotes so that you can find the best deal.
Are you looking for more help with your company? Check out some of our other posts for the tips you need.
