How to Negotiate the Best Rate for Small Business Insurance

For small business owners, protecting their assets with proper small business insurance is imperative. So how do you get the best rate for your small business insurance policy? The first step is to ask other small business owners—preferably those who are in a similar line of work. Ask these associates which small business insurance companies offer the best rates and services. Find out if they are happy with the policy and the premium they pay. Ask them what they think of their agent or broker. Word-of-mouth is the best way to begin collecting names of agents that could be your best ally in terms of business insurance.

After collecting the names of recommended agents, brokers, and insurance agencies, it is time to start obtaining quotes. Be prepared by learning about the policies you think you may need and have your business information readily available. Appearing insurance savvy is the best way to ensure insurance companies will offer their lowest rates in order to get your business. Sometimes you can use other insurance companies’ quotes when negotiating terms and obtain an even lower rate.

In addition to contacting the well-recommended agents, you can also contact your personal insurance company to see if it offers a business policy. If this company has proven expertise in small business insurance, you may be able to negotiate a multiple-policy discount.

It is also worthwhile to compare the quotes you have obtained against prices advertised on the Internet. Visit the Web sites of insurance companies and obtain a quote online. Some sites, such as NetQuote, allow users to fill out a short form requesting quotes. These sites then forward your request to insurance agencies that can offer you competitive quotes.

Next, be sure to check with your trade or professional association to find out about any endorsed insurance companies. Often endorsed companies offer discounted rates or additional coverage for association members.

Finally, contact at least one insurance broker. Unlike agents, who work for one insurance company, brokers can access several different companies. A broker who is knowledgeable about business insurance for your field should know which companies would best fit your needs. Also, brokers will often continue to shop for even better rates after you have already purchased your policy from them.

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