Insurance policies come in different varieties with a tangle of wording, definitions and exclusions. You need to understand what you want to protect and be certain that you get the right amount of security from your insurer. Obtaining insurance for your business can be summarized in three basic steps:
Understand the terminology
You need to know how risks are defined, what coverage you are getting - property/casualty, liability, workers compensation - and the policy terms.
I recommend: The U.S.
Small Business Administration (SBA) provides a guide with an insurance-needs checklist and glossary. Q&A's are available from the
Insurance Information Institute (III) and the
Independent Insurance Agents and Brokers Association (IIABA). The
Nonprofit Risk Management Center provides annual webinars on the fundamentals.
Determine what you need
Examine your company's risks before shopping for a policy so you are ready to answer the insurer's questions.
I recommend: Insure.com offers a Small Business Liability Tool as well as a Workers Compensation Insurance Law Tool that to help determine the insurance considerations for your particular business. The American Express offers a tool to help
evaluate your insurance needs and determine what polices to consider. Entrepreneur.com has a detailed
insurance encyclopedia.
Get quotes
Agents and brokers sell the policy and provide support services after the purchase. Online quote requests enable you to compare multiple instant options to get the best price for the best coverage.
I recommend: The Insurance Information Institute (III) has a simple
Insurer Finder tool, searchable by state. Before you buy, check the insurer’s rating with
A.M. Best.