Dallas business insurance is difficult enough to understand without trying to figure out how to get the best rates . Business insurance is unlike car insurance. Calling around will only impede your progress because of limited market resources. As the owner of your owner individual business, you understand the market trends from one perspective, while on the other hand, the insurance underwriting may look at things totally differently. When your shopping for the best rates for business insurance, things can get a little maddening.
So we’ve come up with a few tips that will help you the next time you’re shopping for that perfect Dallas business insurance policy.
Tip #1: Be prepared for business insurance changes.
If it has been a while since you’ve shopped for that commercial insurance policy, just like your business over the past few years, the Dallas insurance market has changed. Some business owners will find that insurance companies have lowered their rates to accept more business, while other companies have changed the type of businesses they will insure. Also, you may find that purchasing more robust policies may actually save money while sticking with the standard general liability policy actually costs more and provides less coverage than you’r used to. So be prepared for change the next time you get a business insurance rate.
Tip #2: Explain your business thoroughly:
Suppose you have an obscure occupation like a silt fence manufacturer, properly explaining your business to your agent can make the difference of whether you have coverage or not. Finding out you have no coverage at the time of a claim is the wrong time to have your first business insurance claims experience.
Tip #3: Provide complete information to your insurance agent.
When you’re getting ready to shop your Dallas business insurance, the insurance company is probably going to ask something about your business. Right? Your agent’s job is to get all the questions that each company will ask and submit that on the proper forms. Since your agent or broker may represent multiple companies, he may have to answer multiple questions several times. Relax, if your agent calls you a bunch of times. They are only trying to get your information submitted to his companies. In this case, the best thing to do is to keep the communication lines open.
Tip #4: Update your website
Are you one of those “Mr. FixIt” types that can do everything? You know; the handyman type. The guy that can do everything so he lists everything from roofing, plumbing, to electrical and concrete on his website. While this is great in case you send someone to your website, listing a number of different trades on your website will increase your costs! While you’re listing everything that you could possibly do for your clients, the insurance underwriter is taking notes. If you add a lot of trades to your website, expect a nice letter from your insurance agent. For the sake of business insurance rates, it’s better to list your main business on your website. Keep the side jobs off your website, and on the side where they belong.
Tip #5: Keep Accurate Records
We all know the Dallas business insurance climates continue to change on a daily basis. With catastrophes on the rise, it’s more important than ever to keep any advantage you can. This makes good record keeping extremely important. Many business insurance providers reserve the right to audit your business. I bet you’re wondering why an insurance company would audit my construction company? Since your insurance is based on the amount of business (exposure), the insurance company wants to get the right rate. So if you’re a multi-million dollar business you’ll pay more for insurance than the single plumber with one pickup truck.
Tip #6: Keep insurance records on all subcontractors.
If you’re in a business that uses 1099 subcontractors, it is extremely important that you carry and maintain insurance information on your subs. At the time of audit, insurance companies will ask general contractors to provide evidence of insurance for all subs. At that time, they will adjust your insurance premium based on whether or not your subs carry enough insurance. Think of it this way, if your roofer doesn’t have insurance, the insurance company will add it and the subcontractor to the policy.
Hopefully, these tips will get you started so that the next time you’re reviewing your business insurance, you head in the right direction. If you’re in Dallas, drop by.