How to apply Business Insurance for small businesses

How to apply Business Insurance for small businesses

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Once you’ve made a list of everything your business needs to cover, it’s time to match those assets and risks up to the right  business insurance policies. Whether you’re just starting out as a business owner or you’re already an established entrepreneur, insuring your business is a must. After all, you’ve worked hard to get your business off the ground – it only makes sense that you’d want to protect it.

Basic Business Information

  • Your registered business name, mailing address and other contact information
  • Your revenues
  • Number of employees
  • Other business locations, including off-site storage facilities
  • The types of products you sell or services you offer
  • How much coverage you’ll need – $2 million is a standard amount for commercial general liability coverage.
  • If you’re insured with another company, you’ll be asked to provide the name of the insurer as well your current premium amount.
  • Website address

Commercial property insurance

Commercial property insurance may be a must for any business with physical assets. With the chance of catastrophes sort of a flood, fire, vandalism, or theft, it’s a fool’s bet to cheap out on property insurance. The type of coverage you seek depends on how much property you would like to insure, and this is often an important area where business owners make the error of under-insuring.

Past claims

If you’ve made an claim for your business within the recent past (up to 5 years before the applying date – the timeframe may vary betting on the insurer), you will be asked to provide details on the event likewise because the claim amount.

Potential risks and exposures

Depending on the kind of business you own, there could also be certain risks or exposures that might affect your application (for instance, if your business manufactures, processes or stores hazardous materials or if you export goods to the U.S.). That’s to not say that you simply won’t be able to get coverage – but it could affect your premium amount.

Property details

Here are a number of the common questions that you just could also be asked about your business’ physical property:

    • Building construction – was it built using concrete? Steel? Wood? Or a mixture of materials?
    • What is the square footage? Is there a basement?
    • How old is that the building?
    • Have there been any renovations to the building and if so, what were they?
    • Is there a burglar alarm system? Is it monitored?
    • Is there a sprinkler system?
    • What is the worth of your equipment, stock and furnishings?
    • Have you made any improvements to the property (e.g. flooring, lighting or other decor) that will affect the number of insurance you require?

Why some applications are denied

Past claims, the quantity of years you’ve been in business, the character of your business and exposures to risk, the standard of your property, where your property is located… all of those factors acquire play when it involves determining your payment amount. Business insurance companies will use this information to research potential risks – and also the higher your potential for risk is, the upper your premium are going to be. If there are too many potential risks, you will not be ready to get any coverage in any respect.

Every business is different.

When it involves insuring your business, there’s no such thing as “one size fits all” – every business comes with its own unique risk exposures, which is why it’s important that your insurer take the time necessary to make sure you get the coverage that’s exactly right for you.