— Hint: Your Local Broker Can Help!
Setting your company budget for the year is never easy, and when you add in the fact that you have to budget for commercial insurance, it gets even more complicated. Whether you are just starting out in business or reworking the year’s budget for your established company, planning ahead for commercial insurance premiums is important.
Steps to Creating a Commercial Insurance Budget
A significant portion of your budget will go to insurance products, but these insurance policies are what protect your company and your livelihood. Here are some important steps to follow:
- Preparing Your Business Plan – You cannot accurately predict your insurance needs without a business plan. Some aspects you need to address in your business plan include: if you will have employees and how many, how many company vehicles you will have, your projected gross income, your projected net income, whether you will own or rent commercial space, if visitors will be permitted on your company grounds, if you will have employees arrive to work, and the structure of your business. You should be able to answer/predict all of these questions for the next three years and you will need to reassess and adjust annually as your business grows.
- Prepare for Insurance Shopping – Commercial insurance in Alabama comes in a variety of options. You will first want to research local brokerages in the area and see which ones specialize in business insurance. More importantly, you want a company that offers a range of insurance policies for businesses – such as farm insurance, restaurant insurance, gym insurance, etc.
- Start with the Basics – Your broker will tell you which basic insurance policies apply to your business and they are likely to include workers’ compensation (if you have employees), liability insurance and commercial auto insurance. You will need to find out the projected premiums for each of these and fit them into your business plan’s budget.
- Budget for Customer, Contract and People Requirements – As a business owner, you need to protect all of your investments. Therefore, you need to consider what insurance policies will be necessary to fulfill contracts, protect your clients and protect your employees. An insurance agent can help you identify which assets in your business must be protected (whether for your benefit or as mandated by a government regulation).
Meet with Your Broker Regarding Commercial Insurance in Alabama
Having proper insurance coverage is important. If you are ready to insure your company and prepare the annual budget, meet with us at The Nowell Agency first. We can help you identify your business’s core insurance needs and even budget for the insurance premiums.
To schedule your business assessment for commercial insurance in Alabama, call us at 877-813-9568. You can also request a quote online for commercial insurance.