Thursday, 09 May 2024 18:18

What’s the Best Time to Buy Business Insurance?

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No matter what kind of business you’re in, you need insurance coverage to manage your financial and legal risk. In fact, most states require small businesses to maintain certain types of coverage, including workers comp insurance.

As you seek adequate insurance coverage, there are a number of considerations to make, including the type of coverage, the limits to your coverage, the agent or broker you purchase from, and beyond. And then there’s the question of timing. Simply put, there are certain times when it is especially beneficial to purchase coverage or to review the terms of an existing policy.

When to Shop for Business Insurance

Some of the most advantageous times to consider your business insurance needs include:

  • When your current policy hits its renewal period. This is an excellent time to shop around, compare rates, and ensure that you’re still getting the best kind of coverage you need.
  • When you hire or lay off employees. As your workforce changes and the scale of your company evolves, you may determine that you need more or less insurance.
  • When you relocate your business. You may need to change insurance coverage to ensure compliance with local laws, or simply to accommodate the needs of a new facility.
  • When you buy new equipment, or when you get rid of old equipment. Any change to your business resources can involve a change in insurance needs.
  • When you expand your product line. You may need new insurance to cover liability risks associated with a particular product.
  • When your revenues take a sharp increase or decrease. You may need more or less insurance as your business income changes.

What’s the Best Time of the Year for Buying Business Insurance?

Insurance offers year-round protection for your business, but there may be certain seasons where it makes more sense to make your insurance purchase.

Remember that, when you choose a certain month to buy insurance, that’s when your renewal process will occur each and every year. As such, it can be wise to look at your fiscal calendar in order to determine the time of year best suited for buying insurance, taking into account your cash flow and the price of your insurance premiums.

When Should New Businesses Invest in Insurance?

A final question: Let’s say you’re launching a brand-new business entity. Is insurance something you need from the get-go, or can it wait until your business is more firmly established?

There are certain types of insurance, including general liability, that you’ll probably want from the very beginning. After all, as soon as you start your business, you begin courting risk. A good broker will be able to tell you more about the types of coverage best suited for your new business.

Something like workers comp may be able to wait until you start bringing on employees, assuming you don’t have personnel on staff from the very beginning.

Is Now the Time to Buy Business Insurance?

If you’re ready to move forward with business insurance, or simply have questions about the timing of the process, reach out to us directly. At FullHR, we are always happy to address questions about small business insurance coverage, and to help our clients get the insurance they need at rates they can afford.

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