When trusting your business’ protection to a business insurance
company there are important questions you should ask. Following are some
of these questions and why each is important:
Can The Company Afford to Pay Your Claim?
Before choosing a business insurance company visit, the Web site of
one of the major insurance company rating agencies, such as A.M. Best
(www.ambest.com), or contact your
state’s insurance department to inquire about the company’s
financial stability. This rating is usually a letter (A or B) and a number
(A7). The combination represents the company’s solvency, access
to reinsurance (insurance for insurance companies) and other information
that affects its ability to pay claims. You will also want to note if
the company is backed by a state guarantee fund.
If possible, only place your business with a highly rated company that
is backed by a state guarantee fund. You don’t want to find out
that there’s no money to pay your claim after a loss happens.
Is the Company Accessible When You Need It?
Certain business operations require an ongoing working relationship
with your business insurance company, such as frequent requests for certificates
of insurance. Others may contact their company frequently with coverage
questions. Is your company as accessible as you prefer? Are requests
for services and answers to questions easily obtained or do you sit on
hold for an hour? Your business insurance company should be convenient
to your schedule.
Does the Company Educate You about Your Coverage?
How proactive is your business insurance company in helping you understand
what you are paying for? You shouldn’t have to ask all the questions;
after all the company is the one in the insurance business. Make sure
your business insurance company is committed to helping you understand
your coverage before a claim.
Does the Company Pay Claims and Perform Services in a Timely
Manner?
Things happen lightning fast in your business. You should expect no
less from your business insurance company. Make sure the company does
what you need it to do (i.e., process claims, issue certificates, etc.)
in an organized and timely fashion.
Does the Company offer a Competitively Priced Policy?
Sacrificing valuable coverage for a cheaper premium is a road you should
never travel. However, business insurance is a competitive marketplace;
many companies may offer the same or better coverage than you currently
have for less. Because insurance is always changing, it is a good idea
to keep your options open.
What Else Does The Company Do?
Many business insurance companies offer other services that can be beneficial
to you. For example, some may sell personal insurance and offer financial
services. If so, it may be beneficial for you to keep all your insurance
and financial services needs under one roof.
Learn more about business insurance from NetQuote – get your
free business insurance quotes today.
