To protect the livelihood of your business, selecting the right insurance coverage is essential. For small business owners, entrepreneurs, and startups, evaluating business insurance quotes can feel overwhelming—but it doesn’t have to be. By reviewing a few critical factors, you can ensure your coverage protects against risks, minimizes disruptions, and keeps your business moving forward. Want to make sure you’re not underinsured? Not overpaying? Getting quality coverage? Here’s what you need to consider when comparing small business insurance quotes.
1. Coverage Needs
Every business is unique, and so are the risks each business faces. It’s critical to evaluate the specific liabilities associated with your industry and operations before you sign up for any policy. Does your business handle physical products, offer services at client locations, or work with sensitive data? For instance, a contractor may need general liability insurance to cover accidental injury or damage on job sites, while a tech business might require professional liability coverage or errors or omissions coverage.
When comparing quotes, carefully review what is covered and, just as importantly, what is excluded. A policy may appear comprehensive, but hidden gaps in coverage can leave your business exposed when it matters most. Look for insurers that define the terms clearly, ensuring peace of mind for every business scenario.
2. Policy Limits
Policy limits are another key consideration. These define the maximum payout a policy will provide in the event of a claim. It’s important to confirm that the policy limits are sufficient to cover potential risks unique to your industry or job size. For example, a business working on high-value construction contracts must ensure their policy meets client requirements as well as statutory requirements to avoid being underinsured, or worse, in violation of regulations or law.
Always opt for coverage that matches the scale of your operations and the requirements of your work or jobsites—being underinsured can bring hefty consequences. Thoroughly compare limits between quotes, factoring in both per loss caps and aggregate limits to ensure protection across multiple incidents.
Are you comparing two quotes with radically different policy limits? Comparing quotes that have similar or exactly matching policy limits can help ensure you can focus on the other variables in this list.
3. Costs
Costs play a significant role in decision-making, but businesses should weigh affordability with value. When reviewing quotes, pay attention to the breakdown of costs, including premiums, deductibles, and any additional fees. A lower premium might look appealing but ensure you’re not sacrificing essential coverage or dealing with significant limitations hidden in the fine print. When profit margins are roughly 2.1% of the total premium insurance companies collect, there are important underlying factors that contribute to why you may be paying less for one carrier or policy compared to another.
Remember, insurance costs are impacted by factors like the depth of coverage, insured location, client requirements, state requirements, and even your business track record. Striking the right balance between cost and coverage is key. While one insurer might offer a visibly cheaper option, weigh these savings against any compromises in coverage. You certainly don’t want to save a few cents now just to lose thousands (or millions) later.
4. Deductibles
The deductible is the out-of-pocket expense you’ll pay before an insurance claim kicks in. While higher deductibles can reduce your premium, they must remain manageable. Think about it this way—would your business be comfortable covering that amount in the event of an unexpected incident?
When comparing policies, ensure the deductible aligns with your financial capacity and risk tolerance. Striking the right balance between premiums and deductibles will save you money in the short term without jeopardizing your ability to recover from a claim.
Are you comparing two policies with radically different deductibles? Sometimes this can be a deciding factor between two policies that otherwise look very similar.
5. Exclusions and Limitations
Exclusions and limitations might not be the first thing you notice in a policy, but they significantly impact the usefulness of your coverage. These are the specific circumstances or claims that a policy doesn’t cover or in some way limits the coverage provided, and understanding how they apply is vital.
For instance, general liability policies will usually exclude liability for cyber incidents, and most liability policies do not cover certain types of contractual disputes. Scrutinize the exclusions carefully to ensure you’re not left unprotected in critical areas. If you’re unsure how an exclusion applies, ask for clarification from the insurer or its representative—it’s better to be informed up front than to find out after a denied claim.
6. Social Proof
There’s nothing better than the peace of mind that comes with a word-of-mouth referral from someone you trust. The next best thing is a recent review from a verified user who is a lot like you.
In addition to 3rd party verified review sites like TrustPilot and Google Business Profiles, insurance carriers receive ratings and the Better Business Bureau also evaluates and rates carriers and insurance companies with a consumer-friendly system you can trust. Make sure to thoroughly research your carrier options.
Thimble has covered over 150,000 small businesses (and counting), and thousands of those professionals/owners have written positive 5-star reviews (check us out on TrustPilot or our Google Business Profile). Plus, Thimble only provides coverage from A-rated insurers and has an A+ rating from the Better Business Bureau, all green flags you can count on.
Get A Quote in Seconds
Now you’re ready to compare insurance quotes with confidence! Running a business is already complicated— insurance shouldn’t be. With Thimble, you can get a no-risk, free quote in just seconds. If you’re ready, you can purchase and get proof of coverage in minutes.
Or, compare your options, save your progress, and come back to your quote later. Whether you need coverage for just one job, one day, a month, or a year, we make it hassle-free and perfectly tailored to your needs and your business.
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*Product and activity availability differs by state and insurer appetite. All offerings are subject to change.
