As with most types of insurance, rates for a business insurance policy vary greatly depending on your business and coverage needs.
While you don’t want to cut yourself short, you also don’t need the highest priced policy to ensure coverage. The key is finding the right insurance that fits your budget while still protecting you.
Before you buy business insurance, consider what you need. If you’re buying far more coverage than necessary, you’re paying too much.
Consider Your Coverage Needs
Anytime you buy a business insurance policy for your Colorado based business, you have to consider what amount you’d need to take care of liability issues and damage to your business and property. For instance, if the value of your entire business is $100,000, you wouldn’t need a $500,000 policy to cover you in the event of property damage.
On average, rates for general liability insurance range from $500 to $2,000 per year for small businesses. This gives you a good idea of how much rates vary based on your industry.
Bundle When Possible
Depending on your needs, you may be able to bundle multiple types of business insurance policies into one business owner’s policy. In most cases, the rate is lower than purchasing each policy individually. This can help you avoid paying too much and having a more budget friendly option.
It’s important to look at what policies are available with a BOP. Sometimes you may still need additional coverage and policies based on your type of business. Talk to your local insurance agent about any possible differences.
Reassess Annually
As your business changes, so do your business insurance policy needs. For instance, if you’re a service provider, such as an electrician, you may need additional coverage if you’re taking on larger jobs, such as going from electrical repairs for homeowners to large businesses.
A policy right now might be too much because it offers more than you need. A year from now, your business may have grown and you’ll need that larger policy.
Think About Your Business’s Future
If you have a tight budget, every policy might seem like you’re paying too much. However, think carefully about what would happen if you didn’t have coverage. When your business is just getting started, it may be impossible to recover if there’s a natural disaster, break-in or liability case.
Before you think you’re paying too much, look at the peace of mind you’re getting from knowing that your business will survive if the something does happen.
Compare Rates
You’re not required to buy a business insurance policy at the first insurance agency you speak with. Talk to multiple companies and compare rates. You should be able to see an average policy rate. You’ll likely find a few that are much higher or lower than the rest. In most cases, it’s best to stick to the average quote to avoid paying too much for the same type of coverage.
When you talk to an agent, you’ll need to provide extensive information about your business in order to get an accurate quote. The more details you have, the more likely you are to get a quote that’s perfect for your exact business. Leaving out anything could result in you paying more than you should.
Ready to discuss insurance options for your business? Contact our team today at our Denver office at 303–388-7216 or our Castle Rock office at 303–688-1251. You can also send us a message any time and we’ll get back to you as soon as possible.