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How to Choose a Business Insurance Provider

Every business needs to protect itself from liability. However, selecting the right coverage can be a complicated process. Your company’s needs will vary based on industry and type of business, and will likely evolve over time.

For this reason, it’s vital for entrepreneurs to do their research before making a decision on a business insurance provider. Here's what you need to know about choosing the right provider for you.

Consider multiple business insurance providers.

Different business insurance providers will have different coverage options and pricing. Consulting with multiple insurance agents can give you a better idea of what’s available to you and allow you to make an informed decision. Two popular options for small businesses are Hiscox and Commercial Insurance, which provide a variety of coverage options that are both comprehensive and affordable, allowing business owners to focus on growth.

Choose a plan you can grow with.

As your company grows, so will your insurance coverage needs. When researching a plan, consider whether its pricing structure still suits your business as you take on more employees, locations, or volume of work. For example, some insurance agencies have a per-employee cost that can make scaling an expensive process.

Understand pricing.

While you want to get the best quote possible, it’s also important to understand how insurance companies calculate their pricing. Some possible factors that can influence your quote include business size and type of industry.

A reputable business insurance company will be transparent about their pricing process and the rate you can expect to pay.

Ask what's covered (and what's not).

Your insurance needs will be affected by a variety of factors, including your industry, type of business, and geographic location. Additionally, each business insurance provider will have different offerings. Rather than assuming certain aspects are covered, talking to an insurance agent about what their business plan covers — and what it does not — can ensure you’re prepared for any potential risks and liabilities.

Need more information about business insurance? Check out our page here.

Know your industry's legal obligations.

Every business comes with its own legal obligations for which they must obtain coverage. For example, Business owners who rent an office may need general liability insurance. Some states also require owners to purchase workers’ compensation insurance. Additionally, each industry has its own specific legal risks and subsequent obligations. Taking the time to research these can ensure you have the appropriate coverage to protect yourself and your company.

Prioritize coverage over cost

As a new business owner, you know that every dollar counts. Though it can be tempting to choose the cheapest possible policy, doing so can put your company at greater financial risk in the long run. Lower-priced options generally offer limited coverage, or they may come with issues such as sudden and sharp premium hikes.

To ensure your company is adequately protected, it’s generally best to opt for a broader coverage option with the highest limits you can afford. While it may cost more at the outset, making sure you have all relevant areas covered can reduce liability risk — and give you the peace of mind you need to successfully grow your business.

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