Did you know Americans paid $1.28 trillion for insurance premiums in 2020? Why do you think businesses and individuals heavily invest in insurance?

It provides them with security and a safety net in case of emergencies. Imagine your business equipment breaking down or business goods getting stolen. You wouldn’t want to close your firm because of such uncertainties.

A good insurance policy can protect you from these liabilities and more. Before paying your premiums, you need assurances you are working with a competent insurance agency.

Here are essential factors to consider when choosing an insurance agency.

Factors to Consider When Choosing an Insurance Agency

Each insurance agent brands their company as competent and reliable. You have to look beyond the marketing messages. What should you look for?

Here are essential factors to consider when reviewing options for insurance agencies.

Certification

When selecting an insurance agency, consider certification. A certified agency has met the standards set by your state’s Department of Insurance. It is qualified to conduct business in your area.

Here are some certifications you can look out for:

Certified Designated Agency Representative (CDAR)

The Insurance Regulatory Authority gives this certification. Insurance agents must have a minimum of 3 years of experience in the industry. They also need to complete at least 40 hours of Continuing Professional Development (CPD) every year.

Certified Insurance Advisor (CIA)

The Insurance Brokers Association gives this certification. It also requires a minimum of 3 years of experience in the industry.

Coverage

How much coverage does your business need? Depending on a business model, insurance needs may differ.

As a business owner, your goal is to have your company adequately covered. This can mean different things to different companies. Choose an insurance agency that meets your needs.

As a rule of thumb, you should consider the following options:

• Property coverage
• Commercial general liability
• Commercial auto
• Product liability
• Errors and omissions
• Workers’ compensation

The list is not limited to these types of coverages alone. Your coverage needs may be different if you own a food truck business or other modern businesses.

You are better off working with an agency that can customize a policy according to your business needs.

Insurance Terms and Conditions

There are terms and conditions that accompany every policy. Many people are not sure of the insurance terms and conditions.

People skip to the end of the terms and conditions, or just sign without looking at it. This could land you in trouble during the claims process. Before signing any insurance agreement, understand all the terms and conditions.

If some terms are unfamiliar, get your agent or lawyer to break them down to you. Review the claims process, deductibles, policy period, and policy limits. This will help determine if the insurance agency offers a comprehensive plan for your business.

The terms and conditions will determine your policy provisions.

Reputation

Reputation will tell you which insurance agency is worth your business, as it’s built by word of mouth. It is an effective form of advertisement and one to consider since it’s not coming from the agency.

Insurance agencies with a poor reputation often have higher premiums and unreliable claims processes.

Choose an agency with an excellent reputation and a history of excellent customer service. These companies are more willing to negotiate better terms for your business.

Consider checking agency reviews online via platforms like BBB or Yelp. Online reviews will offer insight into customers’ experiences with the company.

Reading online reviews is not enough, though. Consulting with your friends and family is the most reliable form of word of mouth. Such reviews are more genuine and free of bias.

Your family will offer accurate reviews sugarcoating nothing, while some online reviews are subject to manipulation.

Cost of Coverage

Today, many insurance agencies offer free quotes on their website. This makes it easy to compare prices.

When choosing an insurance agency, consider the price. You need a policy that matches your budget. However, don’t just choose the agency at the lowest price.

Discounts and lower costs should not be at the expense of quality service. You would rather pay slightly higher premiums for quality service.

Customer Service

A competent insurance agency cares about their customers’ needs. They are there to help when you have questions or concerns. You need someone who will help find a solution that fits your needs.

When reviewing customer service, consider the company’s insurance agents. Insurance agents are the first point of contact for clients. They work directly with customers and offer guidance, support, and information on their policies.

Depending on how a company trains its agents, it will determine how helpful they are. Reliable agents answer questions and address your concerns. They offer advice that best suits each customer’s needs.

Agents should ensure clients are satisfied with the company’s services. It’s frustrating to follow up on an issue for days or weeks. Work with an insurance agency that makes your needs a priority.

Work With the Best Insurance Agency

Choosing a reliable insurance agency doesn’t have to be daunting. With the above tips, you will secure a good business insurance policy and avoid frustrations when your business is in crisis.

Central Jersey Insurance Associates is committed to quality insurance products and services. We offer a wide range of business insurance coverage; workers’ compensation, professional liability, and more. The total experience of each client is our number one priority.

Contact us today for quality insurance coverage.