How to Read a Business Insurance Quote

It pays to have insurance for your company. You can enjoy the peace of mind knowing that if a tragedy occurs, your enterprise is protected, and you can recover easier. Every once in a while, it is time to renew or obtain new policies. When that happens, you may feel overwhelmed trying to understand the quotes you are looking at.

Choose your new business insurance wisely and understand what you are reading. The team at the Nowell Agency can help you comprehend the terms and conditions listed on your quote. They are ready to jump in and assist you in weighing your options so that you pick the best coverage for your needs and industry.

5 Tips for Understanding Your Small Business Insurance Quote

Anytime you look at a quote, whether it is for business insurance or to have repair work done, it is easy to look at the price first. It is a good practice to avoid focusing on the costs until you better understand everything the quote entails, such as:

  1. Coverage Breakdown: You may see a listing of different coverages and limits that are being offered. For example, it may breakdown items like the limit for general liability per occurrence and general liability’s annual aggregate. There will be some keywords you will want to learn about, such as:
    1. Per-occurrence limit: This represents the highest amount your policy will pay for any particular incident.
    2. Aggregate limit: This is the total amount your policy will pay for all claims within a particular period.
    3. Deductible: This is the amount that you will have to pay out-of-pocket before your insurance benefits start.
  2. Comparing Quote Prices: Before you choose the lowest price between several quotes, remember that they may not cover the same. You may have received pricing for a business owner’s policy, which includes general liability, property, and other plans, and a standalone general liability. It is a good idea to compare the coverages to see if the types of protection are the same, before looking at prices.
  3. Payment Options: Near the end of each quote, you will find the payment options. You may be able to pay in a single lump sum or in two, four, or ten payments. If you pay in a lump sum at the beginning of your policy, you can save more versus stretching the payments out over time.ç
  4. Additional Company Names: Often, you will see another insurance company’s name instead of the agency that you contacted. This is because brokers like the team at the Nowell Agency, work with many quality insurers to find the best coverages on your behalf. If you see a rating on your quote, it gives you insights into the solvency of the insurer. That is, it reflects their ability to pay out on any claims you may have.
  5. When Coverage Starts: Often, you will see an option to begin coverage immediately, even without making the first payment. Major insurers will send you an invoice after coverage starts, so you can land big contracts knowing you can provide proof of required insurance.

Compare Apples to Apples on Your Business Insurance Quote – The Nowell Agency Can Help

Don’t struggle with trying to purchase business insurance for your Alabama business. Reach out to the brokers at the Nowell Agency to get the best coverage for your needs at reasonable rates. We can look at your existing policies and reveal any gaps that may exist, and then offer you a tailored plan to fill in those gaps. Call us today and gain the peace of mind you deserve.

Call one of our offices near you to schedule a meeting with a knowledgeable and experienced broker at The Nowell Agency about business insurance in Alabama. Request a quote online.

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