How to Select Liability Insurance
With all the insurance companies out there and all the liability insurance products with different levels of coverage, it is no wonder that many consumers are a bit overwhelmed in selecting the right insurance coverage. With a bit of research and due diligence, it is possible to find the right insurance product for you and your family.
The first step in selecting liability insurance is to shop around. Gone are the old days of intense phone calls and running around the many different insurance brokers in town, thanks to the internet. Now, it is easier than ever to shop for liability insurance from the comfort of your home without having to deal with insurance sales pressure and without wasting gas just to look at a few offerings. By getting free online quotes, you will be able to choose from different offerings from liability insurance providers, many from top insurance companies that are reputable and have a high customer satisfaction rate. Just by entering your information once, you have access to several quotes based on the same information that you provided. Study the many offerings and select the one that best suits your needs and established budget. Having an idea of the competitive offers range will help you better negotiate a good price with the insurers.
Look into the best policy you can afford, and the one that has the features that match well your business needs. The cheapest policy is not necessarily the best, or the worst. You will have to compare different offerings and terminology under different categories of coverage to realize a good deal. Insurers vary on the different levels of coverage for the same category, so it is important to view each insurer and not assume that the coverage is the same for all under the same category, as it will vary. In addition, it is important that you realize what is best for your business depending on the industry that you are representing; consult your lawyer about risk, and your accountant about the affordability for your business. In general, insurers will look at the type of business (product and services), industry risk, number of employees and size of the business, the location of your business, as well as previous history to determine insurance rates. However, you can minimize rates by taking some action on the factors that you can control.
Some of the factors you can control to reduce pricing is obtaining a higher deductible to reduce payments. In addition, you can ensure that your employees are well trained, especially in safety and security measures. You can also install surveillance and alarms to improve and heighten security measures. Employee testing and seminars, and pre-hire substance and alcohol abuse testing will also reduce your risk. By following good and safe business practices, you can improve your rates.
A general liability insurance policy will have two components or parts - the bodily injury and the property damage. The bodily injury part will compensate any individual that is injured as a result of an accident in your premises, or due to you or one of your employees causing the accident. The property component will pay for any damage to their property. Depending on your type of business, you will find necessary to add extra coverage and other features to your policy. For more information on this topic visit umav.org.