7 tips for buying business insurance in Birmingham, Alabama

As a business owner, you’ve got a lot on your plate. With many responsibilities on your shoulders, getting business insurance for your Alabama-based company might be something that you’d rather procrastinate. And that’s understandable – buying business insurance can be overwhelming, tedious, and expensive in equal measure.

But what if it didn’t have to be?

We’ve got eight tips for buying business insurance so that you can head into your commercial insurance adventure feeling like a pro.

1. Take some time to identify the risks your business faces.

Insurance is all about protecting you from risk, so it might be helpful to think about all of the risks your business faces. (Okay, we said helpful, not “fun.”) Since each industry and business faces different potential disasters, your insurance plan needs to be customized to your business and your risks.

So. How do I get started?

Think about weather-related disasters you could be susceptible to. Storms? Tornadoes? You’ll want to make sure you’ve got the right coverage in your property insurance to protect you. Then think about your business and the type of work you do. Do you have customers coming on your property? They could slip and fall. Do you provide professional advice and ask for payment? You might want to cover your liability there.

Get a business insurance quote now and save!

In short, you want to think both about disaster-related risks and liability-related risks (which are essentially things that could go wrong that you would have legal responsibility for – or that others could sue you for.)

2. Find out what coverages you might need.

Now. Getting advice and assistance from a trusted insurance advisor who can help you get the coverage you need for your business is a good idea. However, it can’t hurt to do some research into coverages for businesses in your industry just so you’re familiar with the terminology you may run across and the names of the coverages you may need.

These are some common commercial insurance coverages:

  • General liability: This can protect your business by covering your legal liability if there’s an incident involving bodily injury or property damage to others – for example, if someone slips, falls, and injures themselves on your property.
  • Commercial property: Can cover losses affecting your building, such as fire or lightning.
  • Business interruption: Helps your business if you have to temporarily close due to a covered loss by reimbursing you for lost income.
  • Workers’ comp: Can covers medical bills and a portion of lost wages if one of your employees gets hurt on the job.  
  • Professional liability: Can covers your legal responsibility to a client if your negligence, bad advice, mistake, or malpractice causes them to lose money.
  • Cyber liability: Can protect your business against numerous computer-related losses, such as data breaches.
  • Home-based business insurance: Protects a business that you run out of your house.

Of course, your business may need coverages not listed here, which is why it’s a good idea to speak with a trustworthy insurance professional when you’re buying business insurance. We would be happy to help you get a quote.

8 tips for buying business insurance in alabama

  1. Choose a reputable insurance agent who knows your industry.

Having an agent who knows your industry – the risks you encounter, the coverages you need, the challenges you face – is a major asset when you’re buying business insurance. With their knowledge of insuring businesses similar to yours, they can best advise you on your insurance plan (and get you a great rate.)

Check prices for business insurance in your area!

And of course, getting an agent who’s reputable and trustworthy is highly important. You need to work with someone who will be honest and who isn’t just out for themselves. (At Birmingham Insurance, our clients are always our priority.)

4. Consider a business owners policy.

A business owners policy, better known as a BOP, combines multiple types of business insurance into one convenient policy. Most of the time they will include general liability, business interruption insurance, and property insurance.

Not all businesses are eligible for BOPs – they’re intended for small to medium-sized businesses in particular industries. Still, it could be worth doing some research to find out if you qualify. BOPs can be less expensive than purchasing each coverage separately.

Pro tip: Make sure to add any extra coverages that you need to your BOP. It may not include all of the types of insurance you need.

5. Think about what deductible and limits of insurance you want.

Your deductible is the amount of money you agree to pay if you have a claim. You pay your deductible and the insurance company covers the rest of the claim (up to your policy limit.) Selecting a higher deductible can help you lower your business insurance premium because you’re less likely to file a claim, but you don’t want to choose an amount that’s so high that it would be a terrible burden for your business to pay. Consider how much you would comfortably be able to pay in the event of a claim.

Now. When you’re selecting limits of coverage for your business, it’s essential that you have enough insurance to protect your business. You don’t want to underinsure your Alabama business. That would not be good if you have a major claim.

6. Go on an insurance shopping spree.

It’s important that you don’t just settle on the first insurance quote you find. Try to compare rates from different carriers so you can get the best insurance plan for your business at the best rate. Each insurance company evaluates risk differently. That means one carrier may offer you a lower rate than another.

Pro tip: Make sure you’re comparing coverages when you consider each quote. Look at the coverages and limits being offered on each one. And keep in mind that you shouldn’t sacrifice coverage for a lower price.

7. Review your insurance needs every year.

It’s a good idea to go over your insurance policy every year to evaluate your insurance needs. Things change. You might not need the same coverage as you did last year. What if your business has grown? What if you’ve got new risks to insure? What if you have more employees – or fewer employees? These things make a difference to your insurance. At any rate, it’s a good idea to reevaluate your insurance every year.

Buying Alabama business insurance might seem overwhelming and intimidating, but Birmingham Insurance is here to help. We can help you find the coverage you need for your business at a great rate. If you want to shop for your insurance and save money, just fill out our online form or give us a call today. We would be happy to get you multiple quotes for your insurance.  

Our agents can get you multiple commercial insurance quotes now:



Leave a Comment