Make Sure Your Business Is Insurable.
Do this. Consult with an independent commercial insurance agent.
Why? When the time comes you need to know that you can get insurance and at a decent price.
If you are opening a coffee shop. Ok ok. Not a huge issue. Move on to tip #2.
If you are a technology or consulting company and are pushing the current norms then confirm you can get insurance.
A day will come when you will sign a lease, land a big contract or realize that not having a risk management plan in place is not a good thing.
Do Not Let Your Clients Insurance Requirements Dictate the Coverage You Purchase.
Do not do this: You land a new client. The client emails the contract. You review it. You notice a section that has insurance requirements. You call your agent and forward the requirements and ask for a quote.
My point is the insurance requirements of your future client is written with their best interest in mind not yours. Talk to an insurance professional and tell them your business story and what you do. Allow them to help you with a risk analysis.
Do Not Be a Jerk
I want you to consider multiply quotes and speak with a couple of agents. It would be a great learning experience and help you find the right agent for you.
I role play in the video below to give a clearer understanding of what I mean.
There is a right approach and a wrong approach.
The wrong approach: I called 12 agents and I am a new business and do not have any money for insurance but I need it. I need it for this contract I just got. And I need it in 4 days. Email me your best price and I will let you know.
This phone call generally leads to a 2nd phone call 2 days later. "I called 12 agents and no one is calling me back. I really need some help."
The right approach: This is my first time purchasing business insurance. I could really use some help in understanding what these insurance requirements mean and how the process works. I am going to contact 2-3 agents because I want to do my due diligence. I want to consider the overall value of coverage and what you have to offer. What are the next steps?
I hope you found this helpful.
Next Step: Schedule a 10 min call with me
Terry Grier is a commercial insurance agent in the Austin area.