How do you choose the right business insurance (and get the best price)?

This article was written by Vincent Gaudreau, Vice-President of Gaudreau Assurances Inc. Mr. Gaudreau has been working in the field of insurance for 13 years and is a Certified Insurance Broker (CIB) and Fellow Chartered Insurance Professional (FCIP).

Becoming self-employed or starting up a business is an engaging project that involves making many decisions. Some of these decisions are very exciting, while others, maybe not so much.

For example, you may not have a burning passion for insurance (it happens). Nevertheless, it is important to learn more to make an enlightened decision. Good insurance coverage is essential to protect yourself in case of a problem. The choice you make will potentially have an impact on the future of your business.

Where do you start to find the right insurance? How do you go about it? Here is some advice.

Before anything else: determine your need

In order to identify the most relevant solutions for you, first of all, you should know the different types of insurance that are offered to businesses. They can essentially be divided into four categories:

• Personal insurance: Protects you, but your partners and employees as well.
• Insurance for business property and earnings: Protects your buildings and earnings in the event of disaster.
• Liability insurance: Protects you if you are sued for a mistake you make that hurts your customers.
• Accounts receivable insurance: Protects you in the event your customers refuse to pay.

For more details about the insurance included in these four categories, read this excellent article by the Canada Business Network.

Once you have determined the types of insurance that you need, you must evaluate the risks associated with your business’s activities. Make a list of the dangers that you could face and the damages (costs) incurred if something happens. For example, you have a company that sells computer hardware, your warehouse suffers water damage and you are not covered by insurance. Calculate the costs and losses incurred. You will get a better idea of how much you have to pay for insurance.

Once you know what types of insurance you need and you have an idea of how much it will cost if you are not covered, it’s time to shop!

How do you get the best price for your business insurance?

To get the best offers for your business insurance, there are several advantages to calling on the services of a broker that specializes in your field. A broker has access to a vast range of suppliers and will be able to negotiate attractive customized offers for you.

You should contact several brokers to ask them for a quotation and details on what the proposed service includes.