When you're new to the world of small business insurance, it's easy to feel a little lost, overwhelmed, or directionless. You may even be tempted to choose the first policy you find just to get it out of the way. But for the sake of your business and your wallet, we recommend an alternate route: team up with an independent insurance agent.
Think of your independent agent as your secret weapon for saving money on your essential insurance policies. Not only can they help you understand how insurance works, but they can also find the policies that shield your business from the high costs of liabilities and losses. All the while, they'll keep their eyes peeled for the best rates on the market.
How do they pull off this wizardry? Read on to find out.
Independent Insurance Agents: Your Key to Cutting Business Insurance Costs
Thanks to the accessibility of the Internet, finding insurance is easier than ever. If anything, it may be too easy – who has time to sort through all the options to find the right policy? After all, you have a small business to run and customers and clients to take care of.
That's where your independent insurance agent steps in. With an agent on your side, you don’t have to navigate the murky Internet insurance waters alone. Instead, you work with someone who knows the ropes and can steer you toward legitimate, money-saving offers. Here's how agents work their magic:
Industry-Trained Insurance Agents Understand Your Business
Agents who understand the ins and outs of your industry can apply their knowledge to your insurance needs. Because they understand your services and operations, they can distinguish between policies that actually benefit your business and the coverages that are unnecessary.
Independent Insurance Agents Can Shop for Lower Prices
An independent insurance agent's obligation is to you, the small-business owner, not any one insurance provider. They don't work for a single insurance company, which would limit their ability to offer a full scope of policy options. Rather, they have relationships with a variety of top-rated insurance carriers. This allows your agent to find the policies that are in your best interest – not in the interest of boosting a particular provider's sales.
Business Insurance Agents Can Customize Your Policies
Thanks to your agent's expertise in finding insurance policies for businesses in your industry, they can quickly find products tailored for your specific needs. That means you won't have to worry about gaps in your coverage or paying for extras you could do without.
By contrast, if you hunted down policies on your own, there's a chance you could underestimate your coverage needs and end up with a policy that doesn’t cover you. (Related reading: "50% of Private Companies Over-Estimate Their General Liability Insurance Protection.")
Business Insurance Agents Save You Time
Because an insurance agent already has relationships with trusted providers, there's no need to search for carriers and research financial standings. With immediate access to top-rated providers, your agent can quickly hand-compile quotes and send them directly to your inbox. (Fill out an online insurance application to see just how stress-free the process is!)
In short, your agent does all the legwork for you so you can sit back and compare competitive offers (from multiple carriers) at your leisure. The process saves you time, and as every small-business owner knows, time is money.
Ask Your Insurance Agent How To Reduce Your Insurance Costs
Looking for more ways to save money on your insurance policies? Check with your insurance agent about the following:
- See if you can take on a higher deductible to lower your premiums. A high deductible is cheaper than losing your business over an uninsured loss.
- Ask if your provider offers monthly payment plans. Though paying in bulk can save you money in the long run, monthly installments are easier to budget.
- Ask about risk management programs or resources that can reduce your insurance costs.
This post is part of an ongoing series about saving money on business insurance. Stay tuned to learn more about how to cut your coverage costs and still keep your business adequately insured!