Commercial Insurance Brokers Share What You Need to Know
May 19, 2021at9:30 PM
Getting insurance coverage for your business isn’t the most exciting part of being an entrepreneur. It’s tempting just to select a mid-rate policy, assume it meets your company’s coverage needs, and move on with your day. But commercial insurance brokers want you to know that it’s essential to be active in reading and selecting your coverage for your business. Understanding your policy will not only ensure your company has protection against the worst, but it’ll also provide you peace of mind when accidents happen.
Keep reading for the five things commercial insurance brokers want you to know.
General liability commercial insurance isn’t comprehensive.
Simply purchasing general liability commercial insurance (GLC) doesn’t mean you’ve protected your business against everything, no matter what. Every insurance policy has exclusions, and you don’t want to find out about them after an incident.
Most GLC policies don’t include workers’ compensation or commercial vehicles because those fall under different insurance products.
The most common exclusions are:
Failure to render service claims
Professional negligence, errors, and omissions
It’s critical to work with a broker to understand what your GLC policy covers and if you need to purchase additional insurance.
Bundling your insurance isn’t always cheaper––always shop around.
Many insurance providers offer discounts for “bundling” their insurance packages. As an individual, you may have auto, homeowners, life, and even vacation insurance through the same provider for a discount.
A commercial insurance broker will help you shop for the more affordable coverage: as a package including general liability, workers’ comp, and commercial auto––and as individual products.
Of course, it’s easier when you only have to pay one premium every month. Still, the savings could be hundreds of dollars every year if you do your due diligence while shopping.
You need a separate policy for worldwide coverage.
If international travel is a mainstay of your business, your GCL policy will not be enough coverage. For the most part, providers restrict commercial insurance plans to the United States and sometimes Canada. If you or your employees are often overseas, ask a commercial insurance broker about worldwide endorsements.
Some providers may offer an extension on your existing plan. Even if you aren’t traveling currently, knowing your options for the future is worth bringing up when you get an initial quote.
Your homeowners’ insurance won’t cover business assets if you work from home.
As you’re scaling up your business, you may be renting space in your home or apartment for running your business. It’s tempting to avoid the expense of a GCL plan and expect your homeowners’ insurance to cover your business assets.
You’ll be lacking coverage if your company’s inventory is stolen during a home robbery or if your business products cause damage to your home or a neighbor’s property.
Your homeowners’ insurance provider may invalidate your policy if you haven’t disclosed your business operation.
If you drive for work, your personal auto insurance isn’t enough coverage.
As a business owner, you likely use your personal vehicle for running errands for your business as well. Insurance companies consider the vehicle you use to travel between clients or job sites a commercial vehicle and it needs the appropriate insurance policy to cover it.
This is particularly true if you have a van, truck, or car that advertises your business on it. Even window stickers letting other drivers know about your small business may invalidate your personal auto insurance policy.
If you’ve struggled to get insurance through the big companies, contact the commercial insurance brokers at Stellar Insurance.
We specialize in helping businesses with no credit or poor credit get insurance coverage––especially if the big insurance companies have denied you in the past. Our commercial insurance brokers will work with you to find the policy you need at an affordable rate.
Get a free quote for business insurance today, including general liability, commercial auto, and workers’ compensation.