Employers Liability Insurance Shopping Around Pays Dividends
If you own your own business it is imperative for you to have Liability Insurance. In a world of competitive rates and differing policies it is a must to shop around for your Liability Insurance to ensure you get the best deal around for your business and your needs – whether you are renewing your policy or setting up a new one.
Tips to help you shop around for the best Liability Insurance:
With so many companies offering different policies with all the small print how can you be sure you are choosing the right one for you? Here are some tips to help you along your way:
Tip 1: Find a specialist broker – every industry and business has unique needs and risks attached to them and so it makes sense to go through a broker who knows and has experience in your industry. You may think this is an added cost that can be avoided but you are in effect paying for their knowledge and expertise in your area of business insurance and so they can save you money on your rates, and by having the right kind of insurance for your business can potentially save you A LOT of money in the future.
Tip 2: Go for the Package Deals – buying in bulk is always cheaper! Before purchasing any kind of insurance check the company supplies all the different types of insurance you’ll need for your business so you can buy them all from the same company. Buying different insurance policies for your business via several different companies will not only include a lot of paperwork but it’ll incur higher rates – so you can save yourself a packet from getting them all from the same company.
Tip 3: Compare like for like – when looking at the different companies and the different policies make sure you are comparing like for like, for example a company may be cheaper in the premium but make sure you pay attention to the coverage which is offered for legal fees, sometimes paying a little bit extra can go a long a way.
Tip 4: Look online and offline – look at all resources to obtain quotes before deciding on your policy and the company you decide to use. Areas you can look for liability insurance may include: the internet and searching through Google or Yahoo, or use comparative websites, use offline resources such as Yellow Pages, local newspapers, and you can even ask for referrals from friends or other business owners in your field who they use.
Tip 5: Educate yourself – if you are not sure what kind of liability insurance you need or you don’t even know where to start, spend some time reading up on the subject and the areas surrounding liability insurance so you are clued up on what you need to know. For example you can read online, or call companies and ask them questions about their policies, anything you can to gain a further understanding. It is in your best interest to have a basic knowledge of liability insurance and the factors involved before you purchase and commit to a policy.
Watch the video related to business liability insurance rates
Coverzones CEO, Simon Ball, explains the importance of employer’s liability insurance to today’s small businesses and why and how you should shop around for business insurance.
Help answer the question about business liability insurance rates
Can I get general liability insurance with bad credit?My business needs general liability insurance. My credit is not good. I understand rates may be high which is fine, but is there any company that will even insure my business?
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Posted by American Car Insurance on August 24th, 2009 filed in business insurance | 9 Comments »
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9 Responses to “Employers Liability Insurance Shopping Around Pays Dividends”
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August 24th, 2009 at 4:32 am
August 24th, 2009 at 4:44 am
You forgot to mention what your small business will be doing. The rates vary significantly between different occupations. I am sure that you already know that the rates for a small business that replaces roofs will be different than for someone who is going to open a shop selling posters.
You have to call an independent agent in your area to get an accurate premium so that you can build that expense in to your expense planning. If you will be charging an hourly rate you need an accurate figure to build in to the rate you plan on charging. If you are opening a shop you need to build in the cost of insurance as well as other expenses to calculate the mark up you will need to make a profit.
The fact is you need an accurate answer and you won't get it here. An average premium is of no value. You need to call an independent agent in your area to get an accurate estimate.
Check your Yellow Pages or go to this link to find an independent agent – http://www.iiaba.net/agentlocator/findagent.aspx
Good luck on your new business.
August 24th, 2009 at 11:28 am
I am in Virginia and my husband has a mowing business. His insurance is through Cincinnati Insurance Company. For a $1million policy it runs him $300 a year. He also has his commercial mowers insured for an extra $110 per year per mower. The value of the policy on the mowers are $9k each.
August 24th, 2009 at 3:26 pm
Workers comp: if you are not a corporation, the owner does not need wc coverage, but you do need it for the employees. The rate is about 19% of payroll. If you are a corporation, the owner needs it as well. GL is based either on payroll, or receipts, depending on the company you use. Most of 'em base it on payroll.
Most commercial clients won't hire you unless you have general liability and workers comp for your employees. Most residential clients don't care. If you're not a corporation, you're nuts if you have employees working for you – if one of them is killed in a car accident going from job a to job b, YOU PERSONALLY are responsible for the damages – you'll lose your house, your bank accounts, your car, and have your wages attached forever.
August 24th, 2009 at 5:56 pm
It depends on: where you are located; what your annual revenue is; how long you have been in business; if you've had any prior insurance and/or claims; is all the food you are serving local or is any of it imported?
I've written liability only policies for $650, I've written liability only policies for $65,000. Without details about your business it's impossible to be more accurate than that.
August 24th, 2009 at 8:38 pm
I have never seen an insurance company pull credit on a commercial policy. They only do on personal insurance. They may look at the financials of the business for rating purposes (gross sales, liabilities, salaries, etc) & they may also decide if they will cover you based on the length of time you have been in business. If you have been in business less than a year, this will give you more trouble finding coverage than your personal bad credit.
August 26th, 2009 at 4:44 am
August 26th, 2009 at 4:46 am
Actually, the opposite is true. We are in a middle of "soft market". It means insurance carriers have so much money that they write risks that they wouldn't previously consider. Workers Comp rates have gone down twice in 2007!!! Premiums are really low (Hartford's monoline GL is $350)
August 27th, 2009 at 7:37 am
Your rate will normally be based on how much you make (your receipts) during the policy period. However, each company has their own set of guidelines on how much to charge. You may even get a better rate if you get a package policy – one that covers your property as well as the liability exposure. I highly suggest you contact 2 independent agents, and maybe even a couple of captive agents like a State Farm or Allstate and get a variety of options. You want to work with an agent that is knowledgeable and trustworthy to protect your business assets.