As a marketing or management consultant, you know that business insurance is a necessary safeguard against the devastating costs of lawsuits, accidents, or natural disasters. But if this is your first time purchasing insurance, the amount of information, options, and considerations can seem overwhelming. For example, do you need to work with an agent? What does A-rated mean, anyway? Which coverages does your state require? Questions are a great place to begin your search as they open you up to different possibilities. However, if you're pressed for time, you don't have the luxury of muddling through pages of information. To streamline your insurance purchasing process, here are some tips for finding the policy that works for your business.
Business Insurance Tips for Marketing and Management Consultants
As you search for the appropriate insurance coverage for your consulting business, keep in mind these seven tips for finding a policy that offers you financial protection:
#1: Assess your risk exposure.
Before you journey down the Internet rabbit hole, take the time to first consider your risks. For example, ask yourself which liabilities you're vulnerable to and what equipment your business needs in order to operate. These questions will point you toward the liability insurance you should carry and the property you should insure against damage or loss. This assessment will help you prioritize the coverages you need. When you apply for a policy, your insurance provider will conduct a similar assessment in a process called "underwriting." They will determine how much risk they can safely take on and the premium for this coverage, which is why it's important that you prioritize your insurance needs. After all, you want to invest in the coverage that is most beneficial to your business. As your business grows, it's a good idea to reassess your protection needs each year in case your priorities or needs change.
#2: Work with top-tier insurance providers.
If you stumble across the term "A-rated" in reference to an insurance carrier, know that your search is on the right track. High-rated carriers are nationally renowned providers that offer consistent coverage, quick payouts, and competitive rates. They have a reputation for quality products tailored for the needs of different industries. To tell the difference between a legitimate offer and an exaggerated sales pitch, know that you can trust the word of an A-rated provider. But since you are busy growing your business and taking care of clients, you may benefit most from working with an insurance agent. Licensed insurance agents — such as the insurance experts at insureon — save the time and research needed to compare offers, insurance providers, and policies. Our insureon agents maintain relationships with top carriers so you can receive multiple quotes in minutes from nationally respected providers. Plus, we find the products that match your coverage needs — no more, no less.
#3: Prioritize coverage over cost.
For a small business, money can be tight. However, it's important treat business insurance as a necessary expense to grow your business. After all, it only takes one lawsuit to potentially devastate and bankrupt even the best-run consulting business. But as you shop around for a business insurance policy, you don't want to simply purchase the cheapest policy you find. Inexpensive policies may be priced as such because they offer limited coverage, the provider has a reputation of slow payouts, or the policy starts with a low premium that could skyrocket later. It's in the best interest of your consulting business to prioritize the amount of coverage and the reputation of the provider over the rate. When you need to file a claim, every bit of coverage and the speed of the payout can make a world of difference.
If cost is a concern for your business, you may consider a Business Owner's Policy (BOP), a policy that bundles General Liability Insurance and Property Insurance at a lower premium. Talk to your insureon agent about your business's eligibility for this coverage today!
#4: Work with an industry-expert insurance agent.
Licensed insurance agents who specialize in helping consultants find insurance are well versed in the risks of your industry and know the coverages (and policy limits) that keep your business protected. Specialist agents can connect you with top-rated carriers that offer products designed for the unique needs of your business. Typically, marketing and management consultants will want to carry the following types of insurance:
- General Liability Insurance.
- Property Insurance / Business Owner's Policy (BOP).
- Workers' Compensation Insurance.
- Errors and Omissions Insurance.
- Umbrella Liability / Excess Liability Insurance.
#5: Know your policy's fine print.
Each carrier's policies vary drastically. From the deductible amount to the exclusions, you'll want to know every detail of your policy before your sign. When you understand your policy, you can make certain there are no gaps in your coverage and no surprises down the road when it comes time to file a claim. If you have questions about what your policy's coverages and exclusions, ask your insurance agent for clarification.
#6: Consider the deductible.
Most business insurance policies come with a deductible, which is the amount you are responsible for paying before the rest of your coverage kicks in. Though a higher deductible may be tempting because of its lower premiums, it could also become a financial burden when you need to file a claim. On the other hand, policies with a lower deductible tend to have a higher premium, but they will also alleviate your business of needing to pay a costly deductible in the event of a covered claim. The important lesson here is to not take on a deductible that could financially jeopardize your marketing or management consulting business. Instead, only consider the policies whose deductibles you could spare out of pocket.
#7: Overestimate your insurance needs.
The litigation process can be a financially devastating ordeal for small businesses, which is why you want to give yourself considerable breathing room with your policy limits. You never know when you are going to need its financial protection, especially in today's litigious environment. Any injury on your business premises or professional negligence allegation could become a drawn out and costly lawsuit. If an exorbitant settlement is awarded and your policy limits aren't high enough, any excess amount will be your responsibility.
Insurance Policies Tailored for Your Marketing or Management Consulting Business
The Consulting Specialist agents at insureon can help you find the business insurance policies that protect against the risks of your industry. If you're ready to begin reliable coverage, complete our easy online application to receive competitive quotes in minutes!