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How do I get business insurance?

Getting business insurance is a simple process, but it is critical for the protection of your business. You might also be legally required to have a certain type of business insurance. The federal government requires that every business with employees have workers’ compensation, unemployment and disability insurance. Some states also require additional insurance. Laws vary by state, so be sure to check the laws in the state where your business is and any states where you may be working.

Selecting the right type of insurance

The first step in the process is to figure out what business insurance is right for you. Keep in mind that you may want to invest in more than one type of insurance, depending on your work. You need to assess your risks. Think about what types of accidents, natural disasters or lawsuits could affect your business.

 

Remember to consider all aspects of your business. If you or your workers travel to worksites in a company vehicle, you should consider auto insurance in addition to business insurance.

 

We recommend that you take a look at our guide on types of business insurance to help you make these decisions.

Finding an insurance agency

The right insurance broker can help you to find the right insurance, carrier and policy for your business.

 

There is also something new to consider on the insurance scene, which is whether you want an annual policy or a Pay-As-You-Go policy. Jones offers PAYG for contractors that don’t work the whole year. If you only work part of the year, you can pay for insurance on a per contract basis and only have (and pay for) coverage when you need it.

Choosing a policy

Once you have an agent and have selected a policy, you’ll receive a quote. With the quote, you can decide to move forward with that agent or consult another broker for a different quote. Shop around and pick what’s best for you. Compare rates, terms and benefits to figure out what agent and carrier are right for you and your business.

 

Something to keep in mind is how quickly you can get a policy in place. If you have a potential client waiting for a certificate of insurance, an insurance broker that can get you a COI the same day can be a serious asset.

Re-assess

Your business and your needs change all the time. As your business grows, so do your liabilities. Taking on more employees, more equipment, more work and/or larger contracts can all contribute to changes in your insurance needs.

 

If you are working more or less, you may want to change from an annual policy to a per-contract policy, or vice-versa.

 

Talk to your insurance agent or consult a different broker to see if it’s time for you to change your policy.

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