Buying insurance for a small business can be confusing. Beside all the insurance products to choose from, policies contain insurance terms that you may not understand but are crucial to making a smart purchase. You want to buy insurance that fits your needs and is cost effective.
Audit
When you buy insurance for a small business, the insurer may have the right to audit your business to determine whether you have enough coverage. If you are over-insuring your business, you can expect to save money on your policy. More often you might find that you need more coverage, which will leave you with higher premiums.
Annual Deductible
Annual deductible refers to how much your deductible costs in a year. Insurance for a small business can have a deductible that ranges as low as $250 or as high as over $10,000 or more. Understanding the cost of your deductible, allows you to choose a policy with an affordable deduction that lets you set aside money for the annual deductible cost.
Exclusions
When buying insurance for a small business, you need to pay strict attention to exclusions.Exclusions are items not covered by your policy. Many times consumers will purchase unknowingly insurance that they assume has the coverage that they need. However, often the purchasers don”t find out about the gaps in their coverage until after they file a claim and the claim is rejected.This leaves the consumers left to pick up the total expense of the claim.
Inclusions
Inclusions detail what is covered by the insurance for a small business, which you have bought.You need to study carefully what’s contained in your inclusions. You may find out that your policy has significant gaps. Talk to your agent, so that your agent can help you fill the gaps.
Additional Insured
When you purchase insurance for a small business, you may want to add the names of people who are not covered in the original policy. Since it’s your name on the policy, the people you add to your insurance may be considered additional insured.When you add these people, the addition may be referred to as an endorsement or rider, depending on the type of insurance coverage you’re expanding. Both the rider and the endorsement must be documented on your original policy to be in effect.
Binder
A binder is an agreement between you, your agent and your insurance company that outlines the terms of your insurance for a small business. The binder is issued in lieu of a policy. The binder is a temporary document until you get a copy of your policy. Most policies arrive in less than thirty days after you’ve received a binder. In the interim, the binder fulfills the role of a policy when it’s used as proof that you have insurance.
Audit
Recently, J.D. Powers and RIMS surveyed risk-management experts at large commercial businesses. According to the findings of J.D Powers and RIMS, the risk management experts surveyed, cited three top key performance indicators (KPIs) that they seek in an insurance agent. These KPIs for an insurance agent included risk-reduction strategies, communication (positive interactions) and price.
Risk Reduction Strategies
Your contractors insurance is a major piece of your risk reduction strategies. However, for your contractors insurance to work to its full extent, you need to have an agent, who knows how complex your business insurance needs are. Affordable Contractors Insurance agents understand your complex business insurance needs because they specialize in providing contractors insurance. Because they specialize in contractors insurance, their agents are able to provide precise solutions to your needs and affordable insurance coverage you can count on.
Workers Compensation
Workers compensation is a significant part of your contractors insurance.This policy picks up the cost of medical expenses and lost wages for your injured workers. Workers compensation also frees you from being sued by your employees. It also frees your customers from any liability for your workers,who are injured while on their property. Your Affordable Contractors Insurance agent can tailor your policy to reduce your specific risks.
General Liability
General liability is another significant part of your contractors insurance. General liability protects you when you cause property damage, bodily injury, personal injury and advertising injury to a third party like a customer or competitor. It’s must-have insurance for a contractor because it offers so many protections for your business. Your Affordable Contractors Insurance agent will walk you through the process of determining, which coverage you need to have to minimize your risks.
Communication
Affordable Contractors Insurance will always put you through to a live agent. That agent will answer any questions that you have about your contractors insurance. Your agent will be there when you sign up and when you file a claim. Affordable Contractors Insurance takes pride in its customer service, which has brought about a 96% customer retention rate.
Price
There is no set price for contractors insurance. The cost of the contractors insurance depends on the level of coverage you choose. If you choose two million dollars worth of coverage, it will cost more than million dollars worth. The cost of your insurance also depends on the type of work you do, your payroll expenses and gross receipts. Your Affordable Contractors Insurance agent will help you navigate the complicated path of premiums costs. He will help you to figure out dollar amount that you need for coverage. He will also help select the coverage you need and eliminate the coverage you don’t need.
