1. Preparing for and Evaluating the Insurance Market Place
Information is key in finding the best company, agent and policy for business use. Often the insurance consumer does not realize that he or she is the primary keeper of the most pertinent data. Before meeting with a broker or agent, it is necessary to compile an "insurance profile"

* Current business insurance policies
* Updated payroll and sales records
* Current profit and loss statement
* Loss information from the current year and three prior years
* OSHA log, if available
* Current schedule of vehicles/MVR’s
* Safety programs/procedures and safety meeting records
* The company’s promotional literature

2. Determining Risk
Premiums paid will depend on the financial risk a business is willing to assume. The risk the insurance company assumes is the limit of liability or property loss in excess of the deductible assumed by the insured customer. Once it is determined how much risk a business is willing to assume. The risk the insurance company assumes is the limit of liability or property loss in excess of the deductible assumed by the insured customer.

3. Choosing an Insurance Agency
When selecting an agent, keep in mind that an independent agent represents a great variety of insurers. A direct writer only sells the policies of the insurance company he or she represents, which can be quite limiting.

Find out how experienced the agent is who will be handling the account and if he or she is familiar with your industry. The agent should be willing to provide references to call. Also, inquire about the agency protecting itself from errors and omissions with liability coverage and what it does to help ensure efficient claim handling.

4. Choosing an Insurance Company
Once the agent is selected, it is time to consider which insurance company will provide the best protection for the business. There are so many policies, coverage options and premiums that it is easy to lose sight of one of the most important factors of all, the financial strength of the insurance company. Be sure that the company has the financial reserves to pay claims. After all, buying insurance is about covering potential risks, not creating new ones. This does not mean comparing prices is not important, just do not confuse price with value.

Consider how much experience the insurance company has in handling claims in a particular industry. In addition, the insurance company should offer the availability of professional loss control experts to help control exposures and reduce the severity of losses.

5. Implementing Basic Cost Containment Practices
Businesses should consult with the agent and loss control representatives to find out how they can contain insurance costs, for example, installing a sprinkler system or regularly inspecting an existing one. They should also do their part by making sure all fire extinguishers are accessible and in good condition, maintain accurate OSHA logs, adhere to professional loss control recommendations, establish emergency procedures and conduct employee drills, as well as annually review motor vehicle reports on the business’ drivers. These are just a few of the many ways insurance premium costs can be reduced.

6. Reviewing the Quote
After reviewing the quote ask the agent about payment plans. Check for policy limits and whether coverage is written on a "claims made" or "occurrence" form. If any liability is based on sales, verify that the sales figures are accurate. Also make sure the business’ payrolls have been correctly separated and payroll estimates are accurate.

By following these simple steps, it is easy to make a more informed insurance decision. It is all about having the tools to choose the right agency and company to handle business insurance needs with the professionalism it deserves.

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