Insurance Advisor at Oliver L.E. Soden Agency, Inc

How to Buy the Best Small Business Insurance

Small business owners know their business. Unfortunately, they are often unaware of the insurance coverage they have or need. Many business owners end up getting the insurance that is required on their lease without taking individual factors into consideration. However, if an issue arises, some business managers are disappointed with what’s actually covered. To prevent this from happening to you, we would like to share a few tips about buying the best insurance for your small business.


Pick Your Agent Wisely

Setting up a business can be intimidating. So can choosing an insurance agent. This is the person that will be learning about your business - and even some of your personal life. You must trust your agent and the advice they give you. Ask other entrepreneurs in your industry for recommendations on insurance carriers. Often times, related businesses will use the same insurance company because of the specialized service they provide.

When selecting an agent, you have two options:


  • Independent agents, or brokers, represent many carriers. The benefit is that they offer a wide selection of insurance options. Independent agents make commission off the insurance they sell, and some companies pay out more than others. Sometimes, this can lead brokers to favor certain insurance carriers over others.


  • Captive agents represent one insurance company. They are an employee of the company and paid a salary. While there isn’t as big of a selection with a captive agent, you can expect to get the best service this way.


Compare and Select Policies


If your company brings in less than $3 million, a business owner’s policy (BOP) is the best option. A BOP combines business policies and lets you add in additional items that you see fit. However, each carrier puts together different policies, so it’s important to look at the specifics for accurate comparisons.


If your company is grossing more than $3 million, you will likely need separate policies, including worker’s compensation, property insurance, general liability insurance and business interruption insurance.


Save on Rates


Comparing quotes is an important step when choosing insurance for your small business. As you read through the quotes, make sure you get the specifics on each policy. All carriers are different. What will be covered and at how much? What is your deductible?


Bundling policies can help you save money, as insurance companies will often discount prices when you buy more than policy. It's also vital to manage your risk. Just as with other types of insurance, the fewer claims you make, the cheaper your policy will be.


Interested in small business insurance? Get a quote from Soden Insurance and see how comprehensive and affordable our coverage can be!