When you buy business insurance, it's a decision you can't afford to get wrong. You're depending on the insurer to protect you against problems that might otherwise lead to bankruptcy. When you get a business insurance quote, there are six questions you should always ask the agent to make sure you get the right protection.

 

Does the Carrier Have Experience With My Industry?

Every industry has unique workplace risks. The insurance company should have experience with your industry so they understand what you're dealing with. Not only does this help make sure you have the appropriate protection, they can also give you advice on how to prevent workplace accidents.

Depending on the size of your company, some insurance companies provide safety inspection because it's in both your interests to prevent accidents and damages. But if an insurance company doesn't understand your industry, they won't know what to look for.

 

How Am I Covered for On-Site Injuries?

If someone gets hurt on your property, you're exposed to a lawsuit that could cost you your business. Worker's compensation covers injuries to your employees but won't cover visitors and clients. You need extra liability insurance in case a non-employee gets hurt.

When you're discussing liability, make sure you're getting protection for both employees and non-employees. You should also ask if there are any situations when you won't be covered, like an injury caused by negligence.

 

Will the Insurance Cover My Equipment? For How Much?

You also need to protect your valuable machinery and equipment in case it's ever destroyed or stolen. Does your new business policy include equipment coverage? Or do you need to buy a separate policy to insure your equipment for damages? Don't assume that one business policy will cover everything.

 

How Do You Pay Insurance Claims?

If something goes wrong and you need to file an insurance claim, you can't afford to wait months to get your money. What is the insurance company's process for investigating claims and paying them out? How long does it take for you to get your money? How often do they deny claims? Don't wait until you have a problem to find out.

 

Can I Increase Coverage as My Business Grows?

As your business expands, you'll need more insurance to cover your larger company. Can your insurance policy grow over time or will you need to re-apply for another plan? Does the insurance company have a limit on how much coverage they'll offer your business and is there a chance you'll expand past this point?

The insurance agent should also have a plan for reviewing your coverage, at least once a year. This ensures you have the right protection for your new situation.

 

Does the Insurance Company Have a Solid Reputation?

You should check the credit rating of any insurance company before signing up. This reflects how strong they are financially. They should have at least an A rating because this shows they are stable and can pay their claims.

You should also look for referrals from other business owners who signed up with the insurance company. This way you get a feel for how they treat their clients. Finally, ask yourself how you feel after meeting with the insurance representative. Ideally, you'll build a long-term relationship with your insurance agent so you want someone who you can trust and has a genuine interest in your business; they aren't just interested in selling a policy.

A little research makes a big difference for buying insurance. By asking these questions while getting a business insurance quote, you can find the right plan for your business.