What to Know About Your Business Insurance Company

What to Know About Your Business Insurance Company

When trusting your business’ protection to a business insurance company there are important questions you should ask. Following are some of these questions and why each is important:

Can The Company Afford to Pay Your Claim?

Before choosing a business insurance company visit, the Web site of one of the major insurance company rating agencies, such as A.M. Best, or contact your state’s insurance department to inquire about the company’s financial stability. This rating is usually a letter A or B) and a number A7). The combination represents the company’s solvency, access to reinsurance insurance for insurance companies) and other information that affects its ability to pay claims. You will also want to note if the company is backed by a state guarantee fund.

If possible, only place your business with a highly rated company that is backed by a state guarantee fund. You don’t want to find out that there’s no money to pay your claim after a loss happens.

Is the Company Accessible When You Need It?

Certain business operations require an ongoing working relationship with your business insurance company, such as frequent requests for certificates of insurance. Others may contact their company frequently with coverage questions. Is your company as accessible as you prefer? Are requests for services and answers to questions easily obtained or do you sit on hold for an hour? Your business insurance company should be convenient to your schedule.

Does the Company Educate You about Your Coverage?

How proactive is your business insurance company in helping you understand what you are paying for? You shouldn’t have to ask all the questions; after all the company is the one in the insurance business. Make sure your business insurance company is committed to helping you understand your coverage before a claim.

Does the Company Pay Claims and Perform Services in a Timely Manner?

Things happen lightning fast in your business. You should expect no less from your business insurance company. Make sure the company does what you need it to do i.e., process claims, issue certificates, etc.) in an organized and timely fashion.

Does the Company offer a Competitively Priced Policy?

Sacrificing valuable coverage for a cheaper premium is a road you should never travel. However, business insurance is a competitive marketplace; many companies may offer the same or better coverage than you currently have for less. Because insurance is always changing, it is a good idea to keep your options open.

What Else Does The Company Do?

Many business insurance companies offer other services that can be beneficial to you. For example, some may sell personal insurance and offer financial services. If so, it may be beneficial for you to keep all your insurance and financial services needs under one roof.