Properly Insuring Your Business

Protect your business assets and income by identifying the right risks

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.

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.
Small Business Administration (SBA) provides a guide with an insurance-needs checklist and glossary.  Q&A's are available from the Insurance Information Institute and the Independent Insurance Agents and Brokers Association.  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.

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.

• 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.

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