When it comes to business insurance, there's a lot of information to consider and decisions to make.
Do you need property insurance? What about liability coverage? How much should you insure your business for? And that's just the beginning! If you’re feeling overwhelmed, don’t worry – you’re not alone.
Many business owners find the process of choosing and purchasing business insurance confusing and difficult. That’s where a business insurance broker comes in.
A good broker can help take the guesswork out of buying insurance and make sure you have the coverage you need at a price you can afford. What follows is what to look for when hiring a business insurance broker and how they can help you protect your business.
For starters, when you're looking for a business insurance broker, referrals are important.
Talk to other business owners in your industry and see who they use for their insurance needs.
Once you have a few names, do some research on each one. Check out their website and read customer reviews. Make sure they are licensed to sell insurance in your state and that they have experience helping businesses like yours.
Generalists are not your best bet. You want a broker who is well-versed in your industry and understands the risks inherent in your business.
Once you've found a few brokers you're interested in working with, call them and set up a meeting.
This is your chance to get to know them and see if they are a good fit for your business. Be sure, of course, to ask about their experience insuring businesses like yours. Ask lots of probing questions. Get a clear, deep understanding of how much experience they have insuring risks like yours.
Also ask what type of coverage they recommend for your specific needs. Make sure they are willing to answer all of your questions and that you feel comfortable with them.
As importantly, get a clear understanding of how the advisor will go about determining the coverage that’s right for you.
There are a few key questions you can ask to help you get a sense of this:
- How does the advisor determine which products or companies are right for me?
- What criteria do they use?
- How do they get paid?
- Do they have any financial incentives to recommend one product over another?
None of the above is a guarantee you’ll pick the right business insurance broker, but your odds will be better.
Choosing the right business insurance broker is an important decision. Take your time, do your research, and, again, make sure you find someone you feel comfortable with.
If you have any questions about business insurance or would like to get a quote, please contact us today. We'd be happy to help you find the coverage you need at a price that fits your budget.
The Mahoney Group, based in Mesa, Ariz., is one of the largest independent insurance and employee benefits brokerages in the U.S. An employee-owned organization, we’ve been providing our clients with the confidence to face whatever lies ahead for more than 100 years. For more information, contact us online or call 877-440-3304.
This article is not intended to be exhaustive nor should any discussion or opinions be construed as legal advice. Readers should contact legal counsel or an insurance professional for appropriate advice.