We’ve all seen the commercials about shopping around for the best car insurance. But did you know you can compare quotes for business insurance, too?
Business insurance is something every business has to purchase, no matter which industry they are in. However, many small business owners hear the word “insurance” and immediately get nervous. Insurance will never be as much fun as a barrel of monkeys, but it can definitely be something you negotiate. You just need to be informed.Comparing business insurance quotes is easy – there are even companies that allow you to do so online. But before you jump in, here are some steps to prepare yourself for the process of finding the best quote.
Overview of Your Small Business
When you are contacted by an insurance agent, they will ask you how long you’ve been operating your business. You’ll also be asked about your current and projected gross annual receipts. Having this information available ahead of time will get things moving swiftly. You will also be asked to report on your current number of employees and the kinds of work they do for your small business.
Your Building Specifications and Address
Another thing you’ll discuss with the insurance agent is whether your run your business from home or from a commercial location. Be prepared to answer these questions if you’re working from the latter:
- What’s the total customer area for your business?
- How old is the building that houses your business?
- Are there other tenants? What types?
- What are the leasing arrangements?
- How much property needs to be covered?
If you have cars, vans or trucks that are used for the company (such as for mobile service), the insurance agent will have some questions about them. Specifically, you will need to provide the following information for any employee that operates those vehicles:
- Names
- Driver’s license numbers
- Social Security numbers
- What is the average daily mileage of the vehicles?
- Do the vehicles travel across state lines?
Also note that VIN numbers will be necessary for those vehicles.
Your Small Business Type
As unfortunate as it sounds, insurance providers sometimes refuse to insure certain kinds of businesses depending on their type. For example, security companies, aviation companies and theme parks fall into that category.
However, some insurance carriers cater to those areas specifically, so getting insurance is still a possibility. Just search online for providers who cover those kinds of businesses. You can do this easily through aggregator Web sites, such as NetQuote.com and others.
Storage of Chemicals
The agent you talk to will want to know about the chemicals your business uses – specifically, where you store them. That should be easy enough to answer, so don’t sweat it. If your small business has a mobile component where chemicals are also involved, you’ll have to let the agent know where you park those vehicles.
Knowing that, you’re ready to start comparing business insurance quotes and (hopefully) saving some money. Information empowers you and makes your decisions much better. Information doesn’t have to cause dread, honest!
By: Tom Shriver
SmallBizSmarts Insurance Expert
Vice President, NetQuote, Inc.
