A Guide to Buying Reliable Small Business Insurance

Sep 22, 2021 · 7 minutes to read

As a small business owner, you likely want the best possible business insurance coverage to protect what you are building. But, you’re probably also aware that this often costs a lot money. You need to strike a balance between getting the insurance coverage you need and finding a price that fits your tight budget.

However, affordability is only one factor to keep in mind when searching for the best policy to protect your business. It is no good purchasing cheap business insurance if you don’t get the reliability you need.

So how can small business owners find the right policy at the right price? Here are some small business insurance tips to help make the process easier.

How do insurance companies set prices?

There are a lot of choices when it comes to buying small business insurance. It can seem quite bewildering to look at the varieties of insurance available and the different premiums charged for each. However, it’s not as complex as it might seem at first glance.

Each insurer uses customized formulas to help set rates for their insurance products. Every form of insurance (e.g., Professional Liability, General Liability, Workers’ Compensation), uses a separate formula to make these calculations. The rate you pay will be based on the different forms of business insurance you require, and the risks associated with each type.

How do they estimate your premium?

To calculate your premium for different types of small business insurance, insurers will you’re your information into their formulas and come up with the price. There are many different factors that influence the premium you are charged for your insurance, including (but not limited to):

How risky your business or industry is. Some businesses and occupations are more dangerous than others. Running a logging business has a far higher risk factor than running a pizza restaurant. The more risks associated with your small business, the more you can expect to pay for your insurance.

Your business revenue. Taking on large, high dollar projects is good for your bottom line, but it also opens you up to more risk. A mistake or issue with your services may have greater consequences on larger projects. Your small business insurance premiums will reflect this risk.

Location of your business. Your business insurance premiums may be higher if you are located in a big city or town, because levels of crime and vandalism will likely be much higher than in quiet rural areas.

Number of employees. The more employees you have, the more expensive certain types of small business insurance will be. This is because more staff members create more opportunities for things to go wrong.

Your history of claims. If you have a history of insurance claims, you may be more likely to have more in the future. Insurance companies will generally charge higher premiums to businesses with an extensive or costly claims history.

The amount of coverage you need (or want). The more coverage you have, the more the premiums are likely to be. You may be required by law to hold minimum levels of coverage for some insurance types, depending on your industry, occupation, and business structure.

How can I get the best premiums?

Price is a concern for many business owners when considering which small business insurance policies to buy. You want to get the best coverage possible to protect your company, but also want to avoid paying too much for your policies.

Here are six tips to help small business owners find the best premiums on their insurance.

1. Shop around

You may well find a wide range of options and prices across insurance providers. Seeking quotes from different insurers and comparing their offerings can help you better understand how much you can expect to pay and find a price point that works for your budget. While price is important, you should also think about other factors alongside price, such as whether the insurance company is well known for its customer service, swift payments, and how financially stable they are.

2. Avoid over insuring your business

Over insurance happens when you pay for coverage that you don’t need. For example, there is no sense in buying a policy that covers commercial automobile use if you sell online from home, or property insurance if all your business is done on your clients’ premises. Carefully think about your business’ insurance needs to determine what types of policies you may want to consider.

3. Look out for bundling and packaging

As in many other fields, it is frequently cheaper and easier to purchase your insurance as a package. Business Owner’s Policies (BOP) are very popular with small businesses as they provide a variety of different coverages in a single, well priced policy. However, don’t be led astray by bundles that contain more than you need, look carefully at the terms and conditions and see what you’re actually getting.

4. Use a licensed agent or broker

Employing an expert in the field to work on your behalf could help you secure the best premiums. Insurance agents and brokers are familiar with every aspect of the insurance industry. They know what is on offer, and what you want to avoid. They can help find you the best value policies and also help you if you need to make a claim on your policy.

5. Go online

If you don’t want to engage with an agent, going online is a good alternative. Online quotes are readily available and the process of buying a policy is often quick and easy. Sites such as BizInsure even provide business owners with multiple quotes for multiple types of insurance from multiple companies at the same time. This could help you save not just money, but also time!

6. Cut your risks

Insurance companies use your claims history to help calculate your premiums, but they may also take into account any procedures you have in place to help prevent future claims. Simple things such avoiding trip and fall accidents by ensuring all walkways are clear and making sure your floors are dry (or cordoned off while being cleaned) can help a lot. With some insurance companies, an assessor can visit your premises to show you how you can make it safer and reduce your premiums if you follow their recommendations. This might involve drawing up a workplace safety plan or taking steps to make sure your premises won’t be too badly damaged in extreme weather events.

What types of business insurance do I need?

The types of insurance you need to protect your small business will depend on your industry, how your business is set up, and the liabilities you are likely to face on the job.

Some forms of insurance, such as Workers’ Compensation, are typically required by law in most states. Others, such as Professional Liability or General Liability insurance, may be required or expected by the clients you work with. It’s advisable to check local laws, professional associations, and business contracts to understand what types of insurance (if any) you must have.

What should I look for in an insurance provider?

You have enough to do running your small business without having to make extra work dealing with your insurer. An insurance company with strong customer service ratings will likely be easier to deal with if you ever need to make a claim than one with poor customer reviews.

BizInsure can assist you in finding the right insurance for your small business. Find the best value insurance and fastest, most efficient service.

Get Free Online Quotes and get coverage instantly

The coverage you need for your business.

Business insurance is divided into different policies. We offer 4 types so it's easy to design the coverage that fits your business.

Professional Liability Insurance

Get a quote

General Liability Insurance

Get a quote

Business Owner’s Policy (BOP)

Get a quote

Workers Compensation Insurance

Get a quote

Let's find

The coverage you need for your business

Professional Liability Insurance

Get a quote

General Liability Insurance

Get a quote

Business Owner’s Policy (BOP)

Get a quote

Workers Compensation Insurance

Get a quote

BizInsure has really come through for me on some really hard to place risks. Andrew takes the time to understand the risk and work through how we can make it work, rather than looking for ways to say no. Thank you for your help!
Carlos T.
18:06 16 Mar 23
Very helpful and explanatory on the policy line of the policy
Josua V.
17:30 14 Mar 23
Worked with Tevin. Amazing customer service. Was very patient with me in figuring out the best insurance coverage for business. Thanks Tevin for making it easy.
Faisal O.
16:23 14 Mar 23
No complaints, Always a fast response when a need arises.
Dan F.
13:56 10 Mar 23
Very good information patience was shown. Much help from Kaled, satisfied with the amount of insurance and good coverage. Affordable is what you need with starting a small business until you grow. Old saying is go as you grow.
Jacquelynn W.
21:53 20 Jan 23
Professionals at what they do! easy to navigate and very good people to lead to to the best coverage!
Magnifier 2.
20:37 17 Jan 23
I have been shopping for business liability insurance for several months. I am happy to share that BizInsure ranked #1! The representatives were polite, patient, and empathetic. They accomplished what most companies struggle with achieving: they did what they said they were going to do, they were on time, and they had empathy. They delivered a policy for 25% less than the closest competetor, and even included $50k of cyber security at no additional cost! I only write reviews when I receive exceptional experiences- highly revommended; keep up the great service BizInsure!P.S. I own a professional referral service in Hawai'i and I am going to see if BizInsure offers an affiliate program.Aloha!
John S.
05:51 23 Nov 22
They respond quickly and give you quotes immediately ...
Regean K.
23:55 09 Nov 22
The agent that I spoke to was very experienced and could tell that I was new at this and was very understanding and took the time to explain everything to me.
lotanga J.
00:04 15 Oct 22
Easy to work with and very responsive. Glad to have them as my broker.
Edward G.
18:54 13 Sep 22
We’re very happy with BiInsured LLC. VERY AFFORDABLE
Paul A. F.
19:20 11 Sep 22
Jasmine Q was on the spot professional, she knew where to direct me and explain to me my concerns and request; she delivered my personal information within minutes of me asking policy questions.That young lady is a true ROCK STAT!!!
Shaka 3 Z.
23:09 15 Aug 22
For a small non-profit, the package I was given was affordable. The representative was polite, patient, understanding, and knowledgeable.
Gertrude R.
18:06 15 Aug 22
Asked for a specific venue to be place on our certificate of insurance and it was done within one business day. Yay! Bizinsure!
Melinda S.
17:02 01 Aug 22
The process was fast and easy and the professional staff was very knowledgeable with any questions that I had and ready to help
06:40 31 Mar 22
Friendly agents. Timely replies. Fair pricing. This is a good fit for my business! Thank you, Noah, for all your help.
Beth Anne V.
19:27 28 Mar 22
They are awesome
Tony H.
00:41 07 Jan 22
Noa made sure I had all the information I needed for a first time business owner . He helped me understand what I needed to secure a quality policy and he was super helpful when explaining how the policy would serve its purpose to my company. I was very satisfied and had an Awesome experience, I think people like that make the company look good!
Wayleen O.
04:36 15 Oct 21
I was in need of WC, GL and PL coverages for my business and was able to shop, discuss, confirm and purchase all the coverages in two days! This was a great experience, especially when "Time is Money". Noah Bowman was very professional and knowledgeable. Thanks!
AmeriCreed 1.
15:42 23 Sep 21
19:49 09 Sep 21
Their representative clearly explained different kinds of policies to help me select the one appropriate for my needs and then helped me enroll by phone painlessly. By the end of the call, I had a policy in place.
Dissent D.
22:21 02 Sep 21
Eugene was Awesome!!!!
Lakesha G
17:19 21 Jul 21
Excellent solution for writers and authors professional liability policy as well as coverage for copyright and trademark infringement. Service was prompt and excellent.
18:22 22 Jun 21
Done in less than an hour!
William O.
00:30 02 Jun 21
Efficient, and great value. The agent was able to give us a quote and a new policy in a short period of time. Thank you
Brenda J.
20:30 24 May 21
I had a great experiencing obtaining several of my insurance needs as a landscaping company here in Northern Colorado. BizInsure's team took care of my needs and was very responsive to help with paperwork needed to secure a potential client account!
Arik S.
16:34 10 May 21
Very efficient they were able to help me out with my request promptly....highly recommend this companyI am very happy to have them
Elba P.
18:50 26 Apr 21
I need a help getting errors and omissions insurance along with general liability. Jose was very friendly informative and was very patient with me during the process. He found me some of the best rates for the coverage that I needed. Highly recommend
Casper M.
19:51 20 Apr 21
I had numerous conversations with several business insurance agents over a month's time. I also had several conversations confirming the policy inclusion/exclusions and asked many questions. My BizInsure agent was professional, knowledgeable and most important—detail oriented. Even after having an initial conversation a month earlier he knew and *remembered* all my personal/professional insurance needs. When I asked for additional information on the third call he was able to provide me with details very quickly. He was also VERY patient. That is a big plus in my opinion. It illustrated a high level of respect for my needs. I also found when I called back and asked to talk with the initial agent, the person who answered the call was able to get in contact quickly and my agent responded and returned the call within 5-10 minutes. The transaction was smooth, and I think it's a good sign should I ever need to make a claim. I highly recommend BizInsure.
Poetic F.
21:00 07 Apr 21
The rep was extremely helpful actually lowered my quote and made sure I was covered to fit my needs with my growing business! 5star!!
Franklin B.
19:04 16 Mar 21
Excellent service and prices.
Cassiopée V L.
23:13 09 Mar 21
Mr. Daniel Scott was very responsive to my professional needs.
Stephanie W.
17:38 18 Feb 21
Eugene deserves a raise! First time purchasing insurance and he made the process so simple for me. His patience and attention to detail left me feeling confident in my decision to choose BizInsure. Gracias Eugene!
Esined P.
23:32 17 Feb 21
The customer service provided by Jose was outstanding. He explained everything in a very clear/logical way and answered all of my questions. After providing all the information to obtain general liability insurance, Jose sent me the declaration page of the insurance for review. All of the information matched what I provided over the phone and there were no typos. The next day I called back to purchase the insurance which was easy and fast. Overall, my experience with BizInsure including the customer service by Jose exceeded my expectations.
Joe W.
03:29 12 Dec 20
Hiscox/BizInsure made getting Liability Insurance very easy and reasonable.I expected it to be a long and complicated process and it was a nice surprise that they made it so uncomplicated. Thank you. Lisa
Lisa W.
21:51 24 Nov 20
Eugene was incredible. I called 4 other brokers before him who were impossible to get any help.
rhonda H.
23:26 12 Nov 20
Very quick to get in touch with you and good with follow up. Had some trouble retrieving my quote to log into my account initially but Daniel assisted me and the changes were made to get me into my account. Great value for the money.
Fran S.
16:34 20 Sep 20
Very happy to be insured with this company. Professional, Timely, very helpful. Thank you Juan, you made it so much easier for me to understand.
Aileen D.
19:55 15 Sep 20
This company responded when I needed them to respond while facing a deadline. They are an excellent choice for business Insurance.
Michele H.
01:52 12 Sep 20
Jose Quintero took such great care of me and was very patient explained everything I did not understand and got me set up quickly. Fabulous customer service
Christina R.
02:41 27 Aug 20
I can't say enough good things about Daniel Santos kind and effective communication skills as an insurance agent. Daniel was so pleasant, friendly and efficient with helping me obtain insurance as a teacher. If I were to give Daniel a grade, he has earned an At . He made the process easy to understand, it was far easier than what I anticipated. Nancy S.
Nancy S.
00:47 26 Aug 20
I was in need of professional liability insurance for my sole proprietorship. A friend referred me. Everythng was quick and simple and AFFORDABLE!
hope J.
20:31 25 Aug 20
If you need Private Home Care Provider insurance for your company, BizInsure, LLC can get it for you!
Pamela C.
16:45 24 Aug 20
Great and fast service!!!! The representative was very professional!!!!
Tanya S.
19:51 14 Jul 20
I was tryi9ng to find commercial liability insurance for my new comp-any and BizInsure was easy to use and very affordable which is great for me as a new business.
Jimmy S.
19:01 14 Jul 20
Great service insurance prices are great for professionals looking to get insurance for businesses....
Rhonda G.
22:34 22 Jun 20
The provided very professional service and made the process easy.
Paul R.
21:51 04 Jun 20
Bradley Hoyle from the Biz Insure team was excellent to work with. Everything was quick and smooth. Great service, much appreciated!
Kristene S.
02:03 04 Jun 20
Anthony Spencer was great!! Very quick response time!! He was very Professional! I would suggest him because he helped me find a affordable rate and explained all the technicalities..
Fre H.
16:38 28 May 20
I was referred to Bizinsure by a industry trade group that I am a member of. It was easy to get a quote online and then received excellent customer service from Bradley H. to complete my policy purchase over the phone. I have shared this company information now with other business owners for their policy needs.
Dawn T.
22:11 08 May 20
This company was very precise with explaining services and made sure I chose the right business insurance coverage, great customer service at purchasing.
Nekeisha B.
01:30 05 May 20
Jasmine Q
14:31 02 Dec 19
Trish is the most patient, professional and understanding insurance agent I’ve ever worked with. Trish has taken care of all my business insurance needs for the last couple years. I am really happy that I found an insurance agent that I know will take care of me & all of my concerns. I feel like a valued customer & I appreciate the great customer service that I get every time!!THANK YOU!
Dr. Youssef C. A.
17:21 14 Nov 18
Tricia helped me get insurance for my business. The task of obtaining a quote was really starting to frustrate me until I was referred to BizInsure through a different agency. Tricia got me a quote fast, and even took a down payment over the phone and issued the proof of insurance the same day. a+ service, would do it again in a heartbeat!! Thank you!!
Josh M.
18:07 22 Jun 18
BizInsure was a great find! I did not have to fill out applications, and Tricia was able to quote and bind business insurance for me within half an hour.
Allison Y.
17:28 21 Jun 18
Started doing business again and needed a policy fast. Ramez was reasonable, helpful and the rates are OK. Buyer beware? Sure, for me it turned out OK this time. Worth a call.
Mark W.
23:42 13 Nov 17
Great customer service. I've been very inpressed with my dedicated representative that had helped me navegate my insurence needs. Thanks so much!
Graham B.
22:12 23 Jun 17

Popular Searches

Google Rating
Based on 89 reviews