How to Get Business Insurance in 5 Easy Steps
Explore the five easy steps to getting the right insurance for your business. Begin by understanding what types of insurance you need, then compare quotes from multiple providers before purchasing coverage.
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By Melissa Wylie
MW
Content and SEO Manager
Melissa Wylie is the Content and SEO Manager at MoneyGeek, with nearly a decade of editorial experience and six years of work in financial content focused on small businesses. She previously held SEO positions at Bankrate and LendingTree, with bylines on ValuePenguin and MagnifyMoney. Wylie has a journalism degree from the University of North Texas. Her strong foundation in journalism helps her craft content that simplifies complex financial topics to help everyone feel confident when making decisions with their money.
Edited by Casie McCoskeyCasie McCoskey is a professional editor passionate about providing people with accessible information on personal finance. Before MoneyGeek, she worked in the legal field, drafting and editing briefs and motions.
Contributions by 6+ experts
MW
By Melissa Wylie
MW
Content and SEO Manager
Melissa Wylie is the Content and SEO Manager at MoneyGeek, with nearly a decade of editorial experience and six years of work in financial content focused on small businesses. She previously held SEO positions at Bankrate and LendingTree, with bylines on ValuePenguin and MagnifyMoney. Wylie has a journalism degree from the University of North Texas. Her strong foundation in journalism helps her craft content that simplifies complex financial topics to help everyone feel confident when making decisions with their money.
Edited by Casie McCoskeyCasie McCoskey is a professional editor passionate about providing people with accessible information on personal finance. Before MoneyGeek, she worked in the legal field, drafting and editing briefs and motions.
Contributions by 6+ expertsUpdated: September 21, 2024
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Getting small business insurance involves determining what coverage you need and gathering the required information for your application. You'll also benefit from researching reputable insurance providers and comparing quotes to find your best options for small business insurance.
Purchasing business insurance requires understanding your business's needs and comparing your options. These five straightforward steps can help you find the coverage you need for your company.
There are many types of small business insurance; the best coverage depends on your industry, business size and specific risks. Additionally, your business structure (LLC, corporation, etc.) influences the types of insurance you need. For example, LLCs may require specific liability insurance tailored to their structure.
Below is a list of the most common types of insurance for small businesses.
Companies are legally required to have certain types of insurance, such as workers' compensation, unemployment and disability insurance. We recommend consulting an insurance professional to help you choose the best small business insurance for your needs.
Start by compiling basic details about your business, such as its legal name, address and structure. You will also need information about your operations, including your services or products and annual revenue.
For a more detailed application, be prepared to provide information about your business's risk factors. This might include the number of employees, the nature of your business activities and any safety measures you have in place. When applying for product or commercial liability insurance policies, you need to provide specific details about your products and operations.
Each insurer evaluates risk differently, so obtaining multiple quotes helps you understand your options. When comparing quotes from different business insurance companies, here are some key factors to consider:
We recommend using online tools or working with an insurance broker to get quotes from several providers.
MONEYGEEK EXPERT TIPWhen searching for business insurance, balancing cost against coverage is wise. A cheaper policy might be tempting, but ensure it provides the financial protection your business needs. Don't be afraid to ask questions — a good insurer will explain policy details and help you understand your coverage.
You have two primary options for applying for business insurance: online insurance marketplaces or directly with insurance companies.
Online insurance marketplaces, also known as digital brokers, are platforms that connect buyers with multiple insurers. These platforms act as intermediaries, allowing you to get quotes from various insurance companies simultaneously. The main advantage of this approach is convenience. However, these platforms may have only some insurance companies in their database, potentially limiting your options.
Alternatively, directly applying with insurance companies allows you to explore specific providers in depth. When choosing a reputable provider, consider factors such as the company's financial strength (you can check ratings from agencies like AM Best), customer service reviews, the ease of the claims process and whether it offers the specific type of coverage your business needs.
Review all the details of your selected business insurance policy before finalizing your purchase. Ensure the coverage limits, deductibles and exclusions meet your business’s needs.
Remember to discuss any concerns or questions with your insurance provider. You can use this opportunity to clarify the terms of your policy, including how and when to file a claim.
Once you are satisfied with the policy details, finalize the purchase. Pay the initial premium and keep a copy of your business insurance policy in a safe place. It's wise to regularly review and update your coverage as your business grows and changes to protect it from evolving liabilities.
If your business suffers a loss or other covered incident, follow these steps to file a business insurance claim:
Ensure the immediate safety of your employees and secure your property from further damage. If necessary, call local authorities or emergency services.
If possible, Take pictures or videos of the damage. Write a detailed account of what happened while the event is fresh in your mind. This documentation will be valuable when explaining the situation to your insurance company.
Before filing a claim, ensure your policy covers the damage or loss you've experienced and that you understand your deductible and policy limits. If you're unsure about any details, contact your insurance agent or representative for clarification.
Reach out to your insurance provider as soon as possible. It will provide you with the necessary forms and guide you through the process of filing a claim.
Complete the claim forms provided by your insurance company. This usually includes details about your business, your insurance policy, the incident and the damage incurred. Include any photos or other documentation you have — the more detailed and accurate you are, the easier it will be for the insurance company to process your claim.
The insurance company will assign an adjuster to your claim. This person will evaluate the damage in person or virtually and determine how much the insurance company should pay for the loss. Cooperate with the adjuster by providing any additional information they request.
Keep in contact with your insurance company to check on the progress of your claim. If you have any questions or if your situation changes, let the insurer know.
If your claim is approved, you'll receive a payout from the insurance company based on the terms of your policy and the adjuster's assessment.
After a claim, reviewing your insurance coverage is a good idea. You might need to adjust your policy to better suit your business's needs.
Filing a claim can be stressful, but your insurance company is there to support you. Feel free to ask questions or seek clarification at any point in the process.
Regularly reevaluate your coverage after you buy small business insurance to confirm it remains adequate and cost-effective. Significant changes in your business, such as expanding operations, hiring more employees or acquiring new assets, often necessitate adjustments to your insurance policies. Regularly reviewing your coverage helps identify gaps and ensure you have the proper protection as your business evolves.
Additionally, changes in the insurance market can impact your coverage needs. New risks, emerging trends and updated regulations might require adjustments to your existing policies. Periodic reassessment allows you to take advantage of new insurance products, better rates and updated coverage options that align with your business needs.
Michael Omansky Associate Professor, Felician University, School of Business and Information Sciences READ ANSWERS
Russ Shumaker President at On Belay Management Consulting READ ANSWERS Michael Reynolds, CFP® Founder at Elevation Financial READ ANSWERS David S. "Steve" Heesacker Business Instructor at Central Carolina Community College READ ANSWERS Elaine Luther, D.Sc. Business Management Professor at Point Park University READ ANSWERSMichael L. Burkhardt, PhD Head, Insurance and Risk Management Program at Northwood University READ ANSWERS
John Espenschied Agency Owner of Insurance Brokers Group READ ANSWERS Gregory Stoller Senior Lecturer at Boston University Questrom School of Business READ ANSWERSMoneyGeek compiled answers to some of the most commonly asked questions about obtaining business insurance to help you secure the policies you need.
How much does business insurance cost?The cost of business insurance varies depending on your business type, size and the kind of coverage you need. Getting personalized quotes from insurance providers is the most accurate way to estimate what you'll pay to insure your business.
What types of business insurance does a business need?This depends on your business type, size and industry, among other factors. At a minimum, most businesses will need general liability insurance. If you have employees, you will likely need workers' compensation insurance.
How can you compare quotes from different insurance providers?Look at coverage limits, deductibles, exclusions and the type of policy (occurrence or claims-made). Make sure you're comparing rates of similar policies, and consider the reputation and financial strength of the insurance companies as well.
How often should you reevaluate your business insurance needs?It's good practice to review your insurance coverage annually or whenever significant changes occur in your business, such as hiring new employees, moving to a new location or adding new products or services.
What should you do if you need to file a business insurance claim?When filing a business insurance claim, thoroughly document the incident, review your policy and contact your insurance company as soon as possible. Complete the claim forms, cooperate with the adjuster and follow up regularly until the claim is resolved.
What is an insurance marketplace, and how does it work?An insurance marketplace, also known as a digital broker, is a platform that connects buyers with multiple insurers. By filling out a single form, you can get quotes from various insurance companies, making it easier and faster to compare options. However, keep in mind that these platforms may not include all insurance companies in their database.
About Melissa Wylie
Melissa Wylie is the Content and SEO Manager at MoneyGeek, with nearly a decade of editorial experience and six years of work in financial content focused on small businesses. She previously held SEO positions at Bankrate and LendingTree, with bylines on ValuePenguin and MagnifyMoney.
Wylie has a journalism degree from the University of North Texas. Her strong foundation in journalism helps her craft content that simplifies complex financial topics to help everyone feel confident when making decisions with their money.
