Should you buy insurance online? It really boils down to one thing, knowledge. If you know your business and the risks that threaten its existence you are equipped to find insurance policies online. A lot of people find comfort in the traditional process of meeting with an insurance agent. While insurance agents can help, this approach is not without flaws. Insurance agents often focus on the wrong insurance products or force businesses to overspend. An agent who represents a particular company would also not talk about policies and features that they do not offer.
In short, it’s much more liberating to understand the basics of business insurance and make an independent decision. To get you started, the following are 5 things you need to remember when buying business insurance online.
Accessibility of Insurance Certificate
An insurance certificate is proof of insurance that can be shown to customers and clients if required. Some online insurance companies take days to ship the certificate after you buy a policy. However, there are some that give you digital access to your certificate immediately after the purchase. For example, when buying insurance for business by Next Insurance you instantly get access to a live certificate, which can be sent or shown to anyone.
Some Insurance Policies are Mandated by Law
It’s easy to overlook the fact that insurance is not always optional. Depending on the type of industry and other details, getting insurance can be legally necessary. For example, if you are a landlord who is renting out a space for business, you need to get general liability coverage. Also, in most states, it’s legally mandated to get workers’ compensation insurance if you have employees. When trying to buy insurance online, see if these legal requirements are met first before moving on to other coverages.
Pay Attention to the Coverage Amount
Getting the cheapest insurance can leave you in a false sense of security. It’s important to get an adequate coverage amount for your business assets. For example, there is no point in getting property insurance that has a limit of $50,000 if your total asset value is $200,000. Make sure to calculate the cost of all the furniture, equipment, inventory, computers, and other materials before getting property insurance. Never settle for an insurance coverage amount that’s lower than your total business assets. In fact, it makes sense to get additional coverage because your business size and its assets are only going to grow with time.
Proper Risk Assessment Is Essential Before Buying Insurance
Risks greatly depend on the geographical location, business type, and operational details of a business. Even businesses belonging to the same industry can have different risk factors. This is why it’s always a good idea to do a risk assessment before buying business insurance.
Picking a Site that Offers Easy Monthly Payments
The flexibility of making monthly payments can help you stay afloat when cash flow is limited. Unfortunately, not all insurance companies give customers the option to make monthly payments. When picking insurance online, this should definitely be considered.