Best Small Business Insurance 2022
How do you get the best small business insurance in 2022?
Who is the best small business insurer?
What is the best small business insurance policy?
If you’re looking for the best small business insurance, we’ve got the answers to your questions, coming right up.
In this video and post, I’m going to talk about the best small business insurance from soup to nuts.
Okay, so let’s break it down.
How do you get the best small business insurance policy?
The answer to that is pretty straightforward.
In my opinion, you need to work with an expert that understands the needs of small business owners and has access to multiple insurance companies so they can scour the marketplace to find you the right combination of coverages and price that you feel comfortable with.
There is no one insurance company that is going to be consistently the best or lowest price, or broadest protection.
The best, however you may define it, is going to change from location to location, account type, and many other variables.
The best insurer for a women’s dress store in New York City is not necessarily going to be the same for a women’s dress shop in L.A.
That’s why I believe finding the best small business insurance, means finding an expert independent insurance agent or broker.
Finding that “best broker” who can do all the leg work finding you the best policy is really the key.
That will mean that you’re not doing business with direct writers like State Farm, Allstate, Progressive, Geico, or other companies which only have one company to sell you.
It may also mean that some insure tech firms like Next may not be a good choice since they typically sell just one policy, their own.
I say this because Choice is a critically important feature when shopping for small business insurance.
You want to make sure you’re getting a good deal and broad protection – and having choices will assure you get that.
Another factor that I think is critical to your decision-making process, is to work with an expert that can cut through all the red tape and give you advice on what you should be considering. What’s important and what’s maybe not so important.
So maybe the question is – How do you choose the right independent agent?
That’s a tough one to answer because there are about 40,000 agents in America today! How do you find the best?
I think that starts with finding agents online who offer you value. People who explain things and are transparent.
Agents and brokers go out of their way to educate and provide value to the business insurance shopper like you who’s looking for a business relationship.
That may not be that easy since a Google search for business insurance is going to return thousands of options to choose from.
But finding videos like the one you’re watching will help give you a sense of a broker’s personality, who they are, and how they may operate.
The bottom line is that you’ll want to do business with someone you like and can trust.
The other point I want to make is that I take helping small business owners with their insurance very seriously. Getting your protection right is paramount for me.
I believe that without the right protection you’re putting your livelihood and personal net worth at risk. Your business is responsible for your income, your lifestyle, and your long-term net worth.
It is probably your biggest asset, so protecting that asset accurately is critically important.
So let’s get into the particulars on what is the best when it comes to small business insurance.
In my mind, most small businesses are going to be insured on a Business Owners Policy or BOP policy.
Just about every business insurance company has a BOP policy – Chubb, Hartford, Travelers, Hanover, Nationwide, CNA, Liberty Mutual, are just a few of the insurers we represent that have a broad BOP policy that fits most business owners’ needs.
The BOP will include your core property and liability coverages as well as dozens of fringe coverages. I recommend taking what is known as a broadening endorsement from any of the insurers which increases the scope of coverage and limits in those fringe coverages I mentioned.
The other thing I would recommend is that you purchase an umbrella policy as part of the BOP or as a separate policy.
An umbrella will provide you with an extra layer of liability protection over and above the general liability and auto liability limits contained in the BOP Policy. Umbrellas are an economical way to purchase extra liability protection.
Workers’ compensation of course will be needed if you have employees on payroll and that often can be purchased with the same insurer as your BOP policy.
Next on my list of must-haves for all small business owners is cyber insurance. Here I recommend a separate policy and not adding it to your BOP policy.
Why?
Because the cyber included as part of the BOP is often insufficiently broad and insufficient with regard to the limits of protection you can purchase.
You can see more about cyber here: Cyber Insurance 101 – 2021 Edition
Next on my list of small business insurance policies is protection from employment practice liability risks.
Things like discrimination, harassment, wrongful termination, etc. are common threats in the business world and if you have employees, you should consider coverage for employment risks. That policy is known as EPLI or employment practice liability insurance.
Now, here there are some insurers that can include EPLI as an endorsement to your BOP policy and if you’re a very small business this may be the way to go. It’s going to depend on the insurer, your specific circumstances, etc.
You can learn more about EPLI by viewing this video: What is EPLI or Employment Practice Liability Insurance?
Finally, if you’re in a business that provides specialized or professional services you may also need Professional Liability insurance, often called E&O insurance or Errors & Omissions Insurance.
This coverage is needed to protect you and your business from claims which arise from failure to provide professional services which result in financial damages to your customers.
You can see more about that here: Professional Liability Insurance | E&O – When Do You Need It?
Okay, so wrapping this up let’s summarize.
I think the optimal way to find the best small business insurance in 2022 is by working with a skilled expert.
An independent insurance agent or broker who represents a good cross-section of insurers and focuses all of their time on business insurance.
They don’t do a little business insurance and a little life insurance and some benefits and home and auto. That’s not an expert.
In addition to your BOP policy, you should also consider umbrella coverage, cyber insurance, workers compensation, E&O, and EPLI coverage. Plus other required coverages like business auto and other coverages.
That’s a lot to consider, and I get it, you may not want to spend money on all those items right away.
This again is where working with a skilled broker can help explain which policies are must-haves from day one, and how to integrate the others down the road, when your budget will support them.
If you’re looking for that expert broker who represents a lot of different insurance companies and will go at your pace and explain things and not give you a lot of pressure to buy – then I’d hope you’d consider contacting me.
I’ve got 40 years of experience in the business and 4 professional designations so I have the technical expertise to help you and your business find the right protection.
I promise to make your buying experience as positive and professional as possible.
Thanks!
