At Alliance General Insurance Agency in Denver, CO, we are not only concerned with offering our clients insurance policies, but we also want them to be able to choose the most suitable insurance policy. One of the most challenging insurance policies to purchase is commercial insurance. It is quite confusing.
We have seen businesses that are under-insured and the ones that purchased a policy that does not cover the risks they face. To mitigate that, we have given a few tips on how to choose the right kind of commercial insurance for your business. The three main types of commercial insurance are liability insurance, property insurance, and worker’s compensation.
Know exactly what you need
Every business has a unique set of needs. Even two different companies offering the same kind of business face different types of risks. So, before you purchase any policy, list out what your risks are. The kind of business you do will determine your risks.
Besides, it is better for you to list out your risks to your insurance company and allow them to suggest the policy that covers such risks.
Know your coverage limits
You should not just stop at asking about the coverage, you should also know the limits. So, you can get adequate coverage for your business, employees, and your equipment. It is a good idea to read every policy before making a choice.
Strike a great premium-deductible balance
This is the most difficult decision you have to make when choosing an insurance policy. The premium is the amount you pay your insurer monthly or annually. The deductible is the amount you pay from your pocket to fix an insured occurrence before your insurer pays you the remaining part of the bill.
You may choose lower premium and higher deductible because you only need to pay a deductible when something happens. On the other hand, when your equipment gets damaged or stolen, your compensation may be too low because you have been paying a lower premium. Make the right choice. Protect your source of livelihood.
For more information or professional guidance on choosing a commercial insurance policy, you can reach out to us at Alliance General Insurance Agency in Denver, CO.