Business insurance is one of the key risk management tools for anyone who owns a company or runs a small business. However, it can be a complicated task to choose the right coverage, given that there are so many options. To help you steer the course, here are some of the do’s and don'ts of choosing business insurance.

Do:

Get multiple quotes.

Insurers vary considerably on what they offer and the prices they charge. To make sure you get the coverage you need at a fair price, request quotes from three or more companies. This should help you understand what's available and at what price. Failure to shop around could be costly, both in terms of premiums and lost coverage.

Ask an agent for help.

An experienced agent can help guide you through the process safely, steer you clear of common mistakes, and introduce you to different types of coverage you might not have realized existed. For instance, if you run a business partnership, partner insurance will pay a departed partner's survivors an amount equal to their share of the business. That way, the company does not have to be dissolved upon one partner's death. A good agent will spot areas like this where you’re vulnerable and suggest solutions.

Don't:

Choose a policy based solely on price.

Look for value rather than price. Compare coverage limits, coverage types, and deductible amounts in addition to premium costs. You may discover you can buy twice the coverage for only a few dollars more per month.

Under-insure.

It is very common for businesses with tight cash flows to under-insure in an attempt to save money. This could prove tragic in the long run. If you must ever file a claim for liability, property damage, or some other unfortunate event, the paltry few dollars you saved per month will pale in comparison to the amount you cost yourself by not buying enough coverage.

To discuss your business insurance options with a proven agent and a nationally recognized insurance brand, contact Steven Hall - Farmers Insurance in Mountain Grove, MO. Farmers has been a trusted name in the insurance industry dating back to 1928. In addition to business insurance, they also specialize in auto, motorcycle, life, and homeowners insurance as well as Medicare and Medicare Advantage. Visit their website to view directions and office hours or call (417) 926-7900 to request a quote.