Your first instinct when comparing insurance quotes may be to look at price and which one has the lowest premium, but this is not always the best approach. In fact, there are several factors beyond price that you should consider when looking for the best insurance policy for your Louisiana based business.
It’s in the Details!
The first thing you need to consider is that the policies you’re comparing might not be exactly the same. Oftentimes when you’re getting an insurance quote for something like general liability insurance, you may receive a business owner’s policy (BOP) quote that includes general liability, property insurance, and other policies from one insurance company and then just a standalone general liability insurance policy from another. You want to make sure to compare apples to apples. So make sure, when comparing prices, to only compare BOPs to BOPs and standalone policies to other standalone policies.
However, even if you’re comparing the same type of insurance policies, make sure they offer the same benefits. Often there will be key differences or exclusions between lower and higher premiums you need to be aware of. Here are a few items to make sure you compare:
- Per-occurrence limit – This is the highest amount the insurance company will pay for each claim.
- Aggregate limit – This is the total amount your insurance policy will pay for all the claims you incur in a policy period (typically a year).
- Deductible – This is the amount you’ll have to pay out of pocket before the insurance company will start paying your claim.
- Exclusions – These are the claim scenarios that the insurance company will not provide coverage. A common one to be aware of is flooding not being covered under most commercial property insurance policies. You’ll need a commercial flood insurance policy for that!
It’s important to realize that quotes are not final. Sometimes the premium amount can change if inaccurate information was submitted. However, if you are working with a reputable independent insurance agent in Louisiana, they will ask all the right questions to ensure an accurate quote.
What are the Payment Options?
The next thing to consider are your payment options for each insurance policy. You will most likely see options for the following payment terms: single, two, four, or ten payments. While you may be inclined to spread out the cost with a four or ten payment plan, there are some pros and cons to each.
- One Payment – This means you’ll pay a full year’s premium all at once. While it may be a lot to pay upfront, you’ll often save money compared to the other options. And there is the benefit of not having to worry about yet another monthly payment.
- Two, four, or ten payments – For these payment options you’ll pay your full payment in a certain number of installments. Generally, the first installment is a percentage of the premium and then the rest of the installments evenly divide up the remaining amount. You’ll end up paying more than a single payment option, but it can be a great option for newer businesses or companies that may want to spread the cost between quarters.
One of the great things about small business insurance policies is that you can often start the policy coverage right away before making your first payment. Most insurers will send you an invoice once coverage has started or may wait two to four weeks to do so.
Are the Insurance Agency and Provider Trusted?
While the details of an insurance policy and payment options are important to consider, arguably the most important thing is who is providing the insurance? Can they be trusted? Have they been serving your community for a number of years? The last thing you want is a nightmare claim scenario. That’s why it’s important to do your research.
In Louisiana, the best approach is to look for a local independent insurance agency, like Lewis Mohr Insurance Agency, that is locally owned and has been around for decades, standing the test of time. A trusted insurance agency will only work with reputable insurance providers, so when a claim inevitably occurs, it’s a seamless process to get your business back up and running. If you are looking for insurance for your Louisiana based business, give us a call or use our contact form to get started!
