According to statistics, net premiums for the US insurance industry reached $1.32 trillion. No doubt, most Americans understand the importance of having insurance, especially entrepreneurs. If you are an entrepreneur looking to buy small business insurance, make sure you are getting value for your money. Here are the top important questions to ask.
What’s the Payment Limit for This Policy?
When looking at different policies, it is important to check payment limits. Typically, there are two types of payment limits. Per-occurrence limit refers to the maximum amount you can get on a single claim. There is also the aggregate limit, which is the maximum payout per year for all claims. How much your policy will cover generally depends on the size of your business, the risk you pose, plus other factors.
What’s the Process for Submitting a Claim?
Before buying small business insurance, you should ask about how the process for submitting a claim works. Ideally, you want the process to be convenient, speedy, and straightforward. That is because if something were to go wrong, you would need the issue to be resolved as soon as possible. To ensure you get an accurate answer to this question, contact the company’s claims department directly.
Which Factors Determine the Price of My Policy?
Small business insurance companies calculate the price of your policy based on various factors. The biggest factor that impacts your insurance costs is the type of business or the industry. If your business has a higher level of risk, your insurance costs will likely be higher. Similarly, having more employees and a claims history with a lot of activity means you will pay higher costs.
How Can I Reduce My Premiums?
There are many ways to reduce your premiums. For starters, you could opt for a payment plan that requires lump sum payments instead of smaller payments. Second, you should take the time to shop around, so you can find an affordable insurer and the best policy for your needs.
However, the biggest way to save money on business insurance is by reducing the risk to the insurer. For instance, you can make your premises more secure by installing alarms and fireproofing the building. You can also provide sufficient