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Tips for Choosing Business Insurance | Bellingham, MA CPA

Posted by Ann Irons, CPA

Aug 6, 2014 3:04:00 PM

bellingham-business-insuranceYou could be the savviest shopkeeper in town or the master of all things entrepreneurial. Regardless of whether you’re an absolute expert on your customers, your market, and your industry, there’s always the possibility of an unforeseeable accident. From natural disasters to security breaches to bio hazards, not all threats are immediately preventable. Your best bet? Business insurance. Ann Irons, a CPA in Bellingham, MA, shares five considerations for choosing business insurance.

Step 1: Evaluating Your Risks

Underwriting is the process by which an insurance company sets its acceptable threshold for risks, which they use to determine which policies are issued. An underwriter evaluates your insurance application, then makes a decision to cover all or some of the requested amount of coverage. As with any type of insurance, business insurance is comprised of a deductible and premium. Several factors influence the premium amount: the type of building used by your business, its physical location, and how much insurance you’ve purchased.

Step 2: Compare Your Options

Costs and level of coverage can vary significantly from one provider to another. The National Federation of Independent Businesses recommends comparing several options before settling, as this could easily save you a few thousand dollars. Working with a broker is helpful, especially if you have a very specific service offering. For example, say that own a limousine service. Ideally, you’ll want an insurance agency that offers policies tailored to automotive services providers.

Step 3: Consider a BOP

Sometimes it’s in your best interest to purchase insurance policies from several different insurers, but you may find it easier and more cost-effective to opt for a business owner’s policy, or BOP from a single provider; you’ll probably pay less in premiums with a BOP. Most BOPs include coverage for general liability, property, vehicles, and business interruption.

Step 4: Partner With an Agent

First, understand that brokers are paid commission from insurance companies. With that in mind, it’s important to choose an agent who has experience in your type of business. As with a CPA, the ideal broker is fully licensed and/or registered in his or her respective state.

Step 5: Revisit Your Policy Yearly

As your business expands and takes on new opportunities, an increase in its liabilities is inevitable. Conditions change, risks change, and your physical surroundings change. It’s important that your insurance coverage changes, too, to reflect this. Irons also points out the importance of adjusting your policy after purchasing or replacing property or equipment related to your small business.

Hiring a CPA protects your small business. To learn more about our services, or to schedule a consultation with Ann Irons, CPA, LLC, contact us at (508) 966-0700. We offer accounting, bookkeeping, and tax preparation in Bellingham, MA. We serve businesses and individuals in and around Bellingham, Woonsocket, Milford, Medway, and the surrounding cities.

Topics: Small Business Accounting

About Ann M. Irons, CPA LLC

ann_irons_head_shotAnn spent over 25 years in the financial service industry, gaining knowledge and experience that allows her to provide an array of tax, bookkeeping, and accounting services for her clients. Relying on a stringent code of ethics and a dedication to maintaining the highest industry standards, Ann works hard to ensure her clients receive the quality service they’ve come to expect. A member of AICPA and MSCPA, Ann has also had an article featured in the renowned publication, Banker and Tradesman. 

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