Commercial insurance is an important asset in protecting your business. Whether you have started a new business or are looking to change policies, here are seven areas where you will want to pay attention when you are shopping for a new commercial insurance policy.

• Review Your Existing Policy

One of the first steps to take in the buying process for a commercial insurance policy is to understand what type of policy your business already has. If you are shopping for a new policy, it is likely that one or more aspects of your existing policy are unsatisfactory.

• Understand Your Risks

The type of coverage that you want to acquire should be based on the most common types of risks that your business must face. Whether it is for injury, malpractice, or professional liability, you should focus on what your risk exposure could be.

• Get a Variety of Options

No matter what type of policy you are shopping for, it is better to gather a variety of options that will be suitable for your business. Once you have three to five options, you can narrow the policies down to what you need most based on coverage and price. This will help you get the most for your company’s dollar.

• Understand Any Exclusions

Every type of insurance policy has a range of exclusions. Some of these exclusions are based on the price of the policy, while others are based on the type of coverage that you select. Before buying a new commercial insurance policy, make sure you understand the exclusions on the policy and whether it will keep your company adequately protected. If not, you will want to find a policy that does not include that specific exclusion.

• Work to Reduce Your Risk

Before choosing a new policy, you can also take steps to reduce your overall risk. An ecommerce business, for example, could add additional protection for customer financial information can help with risk due to a data breach. Reduction in some of your most common risk areas could give you a better price on your policy and help keep your business protected.

• Select Policy Limits

The policy limit is the amount of money that your company would have to pay in the event of an insured loss. You want to make sure to set this limit so that you can stay protected but that the payout won’t decimate your business after a worst-case scenario. If you run through this scenario and find the cost too high, you can choose a smaller policy limit.

• Inquire About Retroactive Coverage

The last important step to take before you buy a new commercial insurance policy is to inquire with the new insurance company about retroactive coverage. This could help you in the event that your business has already suffered a loss, but you may not be aware of it yet. This can often happen with cyberattacks and data breaches where the damage isn’t detected until data theft has already occurred. Getting retroactive coverage can help in these types of situations.

Published By: Aize Perez