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Whether you are contemplating starting a new business, are a new
business owner, or have owned a business for many years, commercial
insurance can be one of the most important ongoing financial
investments you make in the life of your company. Operating a
business is extremely challenging without having to worry about
suffering significant financial loss due to unforeseen
circumstances. Commercial insurance can protect you from some of the
most common losses experienced by business owners such as property
damage, business interruption, theft, liability, and worker injury.
Purchasing the appropriate commercial insurance coverage can make
the difference between going out of business after a severe loss or
recovering with minimal business interruption and financial
impairment to your company’s operations
How Can I
Purchase Commercial Insurance?
(Contacting a Broker-Agent)
One of the first steps in purchasing small business
insurance is to contact a licensed insurance broker-agent who
specializes in commercial coverages. Beginning a working
relationship with a reliable, competent broker-agent can be as
crucial to your business plan as getting professional advice from an
accountant, banker, human resources analyst, payroll specialist,
lawyer, or a trusted business mentor.
Business contacts that you have made are excellent referral
sources for recommending a commercial lines broker-agent, especially
if the contacts are in the same industry as your business or in a
closely related industry.
Professional broker-agent associations can assist you in your
search for a licensed commercial insurance broker-agent. The
Insurance Brokers and Agents of the West (IBA West) and the Western
Insurance Agents Association (WIAA Group) are professional
associations that can assist you in contacting a commercial
insurance broker-agent in your local area. Please see the
"Resources" section of this brochure if you would like to contact
the IBA West or the WIAA Group. Also, looking through the local
yellow pages under the insurance section can aid you in locating the
phone numbers for those broker-agents specializing in commercial
insurance.
What
Kind of Insurance Do I Need to Purchase for My Business?
Depending on the individual risk characteristics of your
business, the broker-agent will present you with different coverage
options for purchasing commercial insurance. A broker-agent’s
proposal is just that, a proposal. When all is said and done it is
your responsibility to make an informed decision and choose the
insurance that best fits your business plan. The relationship that
you build with a broker-agent is extremely valuable in this critical
decision making process. An experienced broker-agent has dealt with
hundreds of businesses similar to yours. Since commercial insurance
can be complicated, you should feel free to discuss any terms,
conditions, or concepts that are unclear to you with your
broker-agent. It is part of a broker-agent’s service to answer your
questions and help you understand the insurance you are purchasing.
While your business may not need all commercial coverage lines,
it is a good idea to have a basic knowledge of the types of
insurance coverage available. As your business changes and expands
you will have the necessary knowledge to purchase insurance coverage
as new exposures arise. The following commercial lines of insurance
cover broad areas of exposure common to most business operations:
Property Insurance
Commercial Property
Inland Marine
Boiler and Machinery
Crime
Casualty Insurance
Commercial Automobile
Commercial General Liability
Commercial Umbrella
Workers Compensation
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