Insurance

21st Century Insurance Group ACE Limited Aegon N.V. Allianz AG Allstate Corporation American International Group, Inc. Aviva Plc AXA Financial, Inc. Berkshire Hathaway Inc. Central Reinsurance Corporation CNA Surety Corporation

Direct General Corporation FGIC Corporation Financial Security Assurance Holdings First Acceptance Corporation Fortis Insurance Company Generali Holding Vienna AG GMAC Insurance Idaman Unggul Berhad Insurance Australia Group Limited John Hancock Legal & General Group Plc

Mapfre Peru Cia DE Seguros Y Reaseguros Metlife, Inc. MGIC Investment Corporation Munich Re Nationwide Insurance Company Progressive Casualty Insurance Company Schweizerische National-Versicherungs-Ges State Farm Insurance Taiwan Fire & Marine Insurance Company Limited Zurich Allied Ag

Guide to Properly Insuring Your Business

Protecting your business assets and income means identifying the risks and getting the right coverage.
By Laura Sullivan

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:

1. Understand the different kinds of coverage and determine what kind of protection you want and what is required by law.
2. Review the coverage terms and make sure the policy gives you the level of security your business requires.
3. Put the policy to work. Familiarize yourself with claims filing, deadlines and ways to update the policy as your company grows.

Action Steps

The best contacts and resources to help you get it done

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. Click-through subjects and Q&A's are available from the Insurance Information Institute (III) and the Independent Insurance Agents and Brokers Association (IIABA). The free tutorial from MyOwnBusiness.com includes a section on buying insurance. The Risk and Insurance Management Society (RIMS) offers two-day seminars and the Nonprofit Risk Management Center a Webinar 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 lead you to the specific considerations that affect what kind of insurance you need. The American Express online quiz determines what polices to consider. Entrepreneur.com has a detailed insurance encyclopedia. And if you are debating business interruption coverage, Zurich has a cost calculator.

Get quotes Agents and brokers sell the policy and provide 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:  Mega broker Marsh has an online form to request a quote. Multiple quotes can be compared after filling out online questionnaires from NetQuote.com, LowQuotes.com or USInsuranceOnline.com. Prefer to have a face-to-face relationship with an insurance agent? The Independent Insurance Agents and Brokers Association (IIABA) has an online agent/broker finder. And 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.

Use the Services Most insurance companies, agents and brokers offer online services to reduce risk, file claims and monitor your account. Check out what is offered and choose the company that offers the extras that you need.

I recommend:  Zurich (an insurer) demos its suite of online service options, and the Nonprofit Risk Management Center gives a tour through its affordable, independent software program.

Tips & Tactics

Helpful advice for making the most of this Guide

• A multi-coverage business owners policy (BOP) may be all you need, but ask about additional specialty policies, like e-commerce insurance, for your particular niche.
• Price is not everything. The lowest cost may not provide enough protection, but don't waste money on risks that your company can afford.
• The differences are fading between agents (who work for the insurer) and brokers (who work for you). But be aware if the agent is affiliated with multiple organizations or just one.
• In certain industries, reasonably priced insurance coverage is difficult to find, so organizations band together to form a pool, or a self-financed and administered group insurance program.