Premium Provider: Tips To Choosing Your Insurance Partner

Most of us are familiar with the process of buying insurance, having purchased it for our homes and cars. But commercial coverage is an entirely different story. It can be difficult and confusing, but it’s a critical process. After all, when you’re attempting to guard your assets against risk, you want to get it right the first time. So, when it comes to protecting your business, how do you choose the right professional to assist with your insurance needs?

Insurance companies provide coverage in a variety of forms. First, they can write a business owners’ policy (BOP) that rolls several forms of coverage into one. Second, they can write their own version of a package policy for small businesses. Lastly, they can write individual policies for property and liability, and try to cover your needs with endorsements that extend coverage.

The professional liability policy normally is written separately, but that is not always the case. Higher limits are available within the above policies or you can purchase an umbrella policy. Then, there are the many other types of coverage—workers’ compensation, commercial auto, flood and more.

Ultimately, you want an insurance company that is financially strong, and you can determine that by looking at their industry ratings. A.M. Best is one of the most-highly regarded insurance rating services, and the company you choose should have an A.M. Best rating of “A” or better. This indicates the company is financially solid and has a good reputation in the marketplace. Also find out if your insurance company is licensed as an “admitted” or “non-admitted” carrier. Finally, your provider should be known for fair and fast claims services. You certainly don’t want to find out after the fact that your carrier has a history of poor claims handling or is in financial jeopardy.

Before choosing an insurance professional to assist you, consider these key factors:

1. Familiarity with the tanning salon industry is extremely beneficial to you. From an insurance perspective, the tanning salon industry is unique. The agent or broker you choose must understand this and be aware of the types of coverage that specifically address industry exposures. If you provide services or products other than tanning, be sure to advise your insurance professional. These activities oftentimes require additional coverage and consideration.

2. A good agent or broker should be able to help you decide what types of coverage you need as well as recommend the limits of liability you should buy and what deductibles to accept. In addition, they should have specialized knowledge of the tanning salon industry and a commitment to staying abreast of industry changes through education and training. Professional designations such as certified insurance counselor (CIC) or chartered property and casualty underwriter (CPCU) help indicate a professional’s qualifications and usually identify those who place a high value on insurance training and knowledge.

3. Get feedback from industry friends and associates. The best referrals come from others in the tanning salon business, who already carry the proper coverage and specialized insurance. You also can get information from tanning salon associations, trade magazines, industry trade shows and online services.

4. While cost of coverage is important, the premium should not be the No. 1 reason you choose an insurance provider. Consider the insurance company being represented, the number of years it has worked with the tanning salon industry and the scope of its expertise in the insurance and tanning industries. Also, the financing of premium, which spreads the cost of an insurance policy over several months, is a service that might be important to you.

Choosing an insurance professional comes down to how comfortable you are with a broker or agent and how confident you are in his or her ability to secure the protection you need—now and as your business grows and changes. A trusted adviser should be an important member of your team. After all, you’re an expert in your business. It’s worth the time and effort to find an insurance representative that is an expert in your market, too. 

For more information or to get a quick, no-obligation quote, call (800) 844-2101 or visit www.universalinsuranceltd.com.