Buying business insurance in Alliance can be a daunting task and few business owners ever trust that they can really get the coverage they need without overpaying for it.
So, if you’re a small business owner, this information will help you determine if you might be paying too much for your business liability insurance coverage.
If you perform a quick Google Search, you’ll quickly learn that most small businesses with multiple employees pay between $250 and $1,250 per month in property and casualty (liability) insurance while sole owners and freelancers are paying as little as $50 per month and up to a few hundred dollars per month.
If your insurance costs don’t fall within these ranges, there’s a good chance that you are paying too much.
So what causes the fluctuation among the prices for business and auto truck insurance?
First, there are only a handful of insurance companies that can properly insure a small business. Given that insurance is controlled by each state individually, only the largest insurance companies with the resources to comply with 50+ different sets of regulation can adequately insure any given business.
This also means that smaller insurance companies can’t offer all the necessary coverage in every state. As a result, small business owners can’t take advantage of the multi-policy discounts which can result in significant savings.
Check your policies to see if you are with one of the top A-rated insurance companies. Next, confirm that the amount of your business insurance in Alliance is appropriate for your business. No one wants to pay for more coverage than they actually need, but in many circumstances, a small businesses’ insurance requirements don’t generate enough profit for a traditional insurance agent to get excited about selling the coverage and servicing the account.
As a result, the agent becomes motivated to sell the small business owner insurance policies they don’t need or higher limits than they need in an effort to generate a larger commission.
Rating factors are key in determining proper insurance pricing. The rating factor for your company can be found within your insurance policy documents. Revenue is one of the most important rating factors insurance carriers consider. If the revenue figure being used to rate your company is greater than your expected revenue, you are definitely paying too much for your business insurance in Alliance. Unfortunately, we have seen agents and underwriters unnecessarily escalate these figures resulting in a higher premium.
If you discover you’re currently overpaying for business insurance in Alliance – or you’ve been sold insurance that you don’t actually need – remember that insurance can be canceled or changed anytime, even if you’ve already paid for an entire year up front.
We’ve made it extremely easy for customers to transfer their current policies to our platform where coverage can be removed, added, or adjusted, so contact us today to get started.