Commercial insurance is coverage that’s uniquely designed for business owners. There are four coverage categories including property insurance, general liability coverage, umbrella insurance and commercial auto insurance. Before shopping for commercial coverage, business owners should know the five tips listed below.

Evaluate the Value of Each Option

Just because a person has always been able to get great deals on homeowners insurance policies from a certain company does not mean that an equivalent deal can be found on commercial insurance. Business owners should evaluate insurance policy costs, but they should give equal consideration to the policy’s value when making a decision.

Do Some Research

Commercial insurance requirements cannot be fulfilled by one-size-fits-all policies, and a company’s coverage needs depend on a variety of variables. To find the right business insurance coverage, the owner should work with an agent who can tailor the policy to the company’s needs. Knowing which types of coverage are required can help business owners keep costs low, and it can help them avoid buying unnecessary coverage.


Perform a Risk Assessment

Before working with an insurance agent to find the right coverage, business owners should look for ways to lower risk. A little effort in this area can lower a company’s insurance premium because insurers will notice the owner’s attention to detail. Most insurers provide risk management audits to potential clients free of charge.

Do a Credit Check

Those with good credit are proven to present a lower risk, and they get the best premiums. The better a business’ credit status, the less the owner will pay for commercial coverage. By paying bills on time and monitoring the company’s debt load, owners can save on the coverage they need.


Don’t Buy Too Much Coverage

This is an all-too-common trap. Business owners can save by only buying the necessary coverage. Depending on the risk area to be mitigated, insurance may not be the appropriate solution. The business owner’s best course of action would be to speak to a risk advisor to determine the most cost-efficient way to protect the company from liability.

Consider Seasonal Coverage

Owners of seasonal businesses should consider policies that allow for seasonal coverage or adjustments. After all, it makes little sense to insure a company in the off-season when that money could be invested in growth strategies. Most insurers do not allow seasonal coverage, but it’s worth a look.


Running a business is an always-on proposition, and owners are never really off the clock. However, certain aspects of the company can be somewhat automated. By following the tips above, business owners can spend less time worrying about insurance coverage—and spend more time running the company.