Protecting a business from unforeseen lawsuits and damages is as easy as purchasing the right mix of insurance products. From general liability insurance to crime policies to protect against employee theft, the gamut of choices is endless.
Following these simple steps will get any business insured and bonded in no time.
Instructions
Insuring and Bonding a Business
1. Search for the right insurance company, either through an Internet search or phone book. Tom Shriver, vice president of national sales for NetQuote.com, recommends visiting jwsuretybonds.com to find a provider.
2. Ask for multiple quotes from several companies. Shriver says that for certain kinds of bonds, premiums can range from between 1 to 3 percent per year. "If you wanted a $50,000 bond," explains Shriver, "your premium could run between $500 and $1,500 per year."
"The average annual cost per surety bond may be about $25 per each $1,000 of coverage required," adds Marjorie Young, senior vice president or New York-based E.G. Bowman Co., Inc. "A crime policy will depend on a number of underwriting factors but for a small business may run anywhere from $500 to $1,500 a year."
Comparative shopping is a must to find the best deal, and more importantly, the right deal. Always make sure that comparisons measure specific types of coverage, not just cost.
3. Submit an application with payment to the chosen company. Once an insurance company accepts the application and payment, the policy will go into effect. Make sure to ask the insurance agent when the date of coverage begins.
