How to compare business insurance and choose the best provider
As a company owner or decision-maker, you know that every small business faces risks. You also surely understand that you’ve got to protect your company from the financial consequences of things like employee injuries, customer property damage, lawsuits, professional mistakes, and much more. How do you do that? You need to compare business insurance providers and buy policies from a company you can rely on.
But there are lots of business insurance providers out there. How do you evaluate them? That’s a great question! Read on to learn about an effective process for finding the best small business insurance company for your needs.
Assess your business insurance requirements.
Before you start your business insurance provider comparison, it’s essential to know what types of insurance you need. Each company’s insurance requirements are unique, but every business needs some and potentially all of the following core coverages:
- General liability insurance. This policy covers bodily injury or property damage to third parties. It's essential for most businesses. Common general liability insurance claims include things like customer slip-and-fall incidents or employees accidentally damaging property when working at a client’s home.
- Workers' compensation insurance. Workers’ comp pays medical costs and provides other benefits to employees who suffer work-related injuries. So, if someone steps off a ladder awkwardly and sprains their ankle, this policy can pay for their care.
- Professional liability insurance. Also called errors and omissions (E&O) insurance, this coverage protects businesses that provide professional advice or services from claims of mistakes. Imagine you advise a client to purchase the wrong computers, and they incur costs to return them and rush order the correct equipment. If they sue over these financial losses, this policy can protect your business.
- Commercial auto insurance. This insurance is for vehicles your business owns or leases. It covers damage and third-party lawsuits. Let’s say your employee runs a stop sign and collides with another motorist. Commercial auto coverage can pay for damage to the other driver’s vehicle and medical care if they’re injured in the accident. It can also pay to fix your company’s vehicle.
- Cyber insurance. This policy can pay specified costs resulting from data breaches and cyberattacks. So, if someone hacks into your network and steals customer credit card numbers, this insurance can pay associated costs, such as notifying them.
- Business Owners Policy (BOP). A BOP conveniently combines general liability and commercial property insurance into a single policy.
- Umbrella insurance. This policy covers claim amounts exceeding the limits of the underlying biBerk policy up to its own limit.
You can find more information about these policies on our website, and our licensed insurance experts are also happy to answer your questions as you compare small business insurance policies and providers.
Tools for finding the best insurance for a small business
Once you’ve figured out which coverages you need, you can focus on finding the best small business insurance provider. How do you do that? There are multiple steps you should take.
Get policy quotes.
It’s wise not to let cost be the only factor for your insurance purchase, but it’s something to consider, so you should check prices. Just be sure to compare coverages across the different quotes to be sure you’re getting an apples-to-apples comparison. The biBerk website lets you get free, instant, self-service quotes.
Read customer reviews.
Find and read insurance company reviews from other business owners. Are they happy with the provider’s customer service, assistance in the claims process, etc.?
Check the company’s financial strength.
How do credit rating agencies like A.M. Best Company and Standard & Poor’s Corporation rate your candidates? A high rating is an indicator that the company won’t struggle to meet its obligations due to a catastrophic storm with a large number of claims or because it mismanaged its finances.
What to assess when comparing business insurance providers
Keep in mind that even when two providers seem to have similar small business insurance offerings, there can be significant differences in the companies themselves. And the company behind the policies can make all the difference when it comes to protecting your company financially. Be sure to learn about the organizations.
For example, it’s crucial that the company you choose is financially stable. It should have strong financial ratings that give you confidence in its ability to pay claims. You also want to work with a provider with a reputation for attentive customer service. When you’ve suffered a loss, a responsive company with a smooth and efficient claims process can help you address the issue and move on with minimal business disruption.
The best small business insurance companies also make it easy to interact with them online. Getting quotes, downloading Certificates of Insurance (COIs), and other touchpoints should be fast and frictionless. You’ve got a business to run and probably little time or patience for confusing or inefficient processes!
Finally, it’s reassuring to work with a company with a recognizable name and excellent reputation in the insurance industry.
Business insurance comparisons: Sometimes, it pays to switch.
If you already have business insurance, it’s a good idea to review it regularly. In some instances, you may find that another provider has better coverages. Many biBerk customers had insurance from other companies before learning about our comprehensive policies, competitive costs, and exceptional service. They wanted the best insurance for their small business, so they switched to us.
Reviewing your insurance policies is also important because businesses evolve. If your company grows, develops new offerings, or takes on new business risks, you’ll need to make changes to your coverage. That might mean getting new types of insurance, adding policy endorsements, or increasing your policy limits.
Compare business insurance companies to protect your business.
Choosing the right business insurance company is critical for any small business owner. There are lots of factors to consider, but don’t let that concern you. It’s easy to narrow the list to a few top contenders and then take a closer look at them.
By understanding your needs, reviewing provider websites, getting quotes online, and carefully evaluating companies, you can secure the best small business insurance. Remember to prioritize coverage and customer service over price alone.
Taking the time to compare business insurance methodically and thoroughly ensures you’ll be protecting your business from unforeseen risks and helping ensure its long-term success.