Top Considerations for Small Business Insurance Coverage

Numerous factors should be considered by small business owners when shopping for business general liability insurance (commonly called GLI).

• First, owners need to determine how much coverage is necessary to cover their business operations. This is determined by numerous items such as ownership structure (corporation, sole-proprietorship, partnership, etc.), the amount of risk involved to life and property, potential damage or replacement costs, types of equipment or machinery (if any) and the likelihood of an accident.

• Once the coverage amount is determined, another consideration is the cost of the required coverage. Owners should seek quotes from several carriers.

• When quotes have been obtained, owners should then research the reliability and reputation of the responding companies. Cost may be a key factor, but a low premium matters less if the carrier has a history of delaying or fighting payouts.