Entrepreneurs should consider insurance as their first line of defense–if something goes wrong with your startup or small business, insurance can play a critical role in defending your business and paying resulting damages.
To help, here are four tips to help Kansas and Missouri businesses find a broker or agent to find the right coverage for your business.
(Related Guides: How to find a lawyer | How to find an accountant)
At the outset, it is important to note that insurance agents and insurance brokers are not the same thing. Traditionally, agents are only going to seek insurance policies from one specific carrier, while brokers will seek policies from multiple carriers. This is not always the case, but it is the general rule. As a result, a broker is more likely to find you the best policy for your specific needs because they will have access to a larger pool of potential policies.
You may have a great personal insurance agent or broker, but they may not necessarily have the experience in the commercial insurance world that you need. Always ask your broker or agent if they have experience in commercial policies and ask what they have done in the past. If they don’t have the experience you need, they can probably help you find a broker or agent that can help.
Most businesses will need similar policies to cover standard risks, such as general liability insurance. However, many businesses will have special and unique risks for which they may need special coverage. For example, you may need to insure against the risk of data breaches if you are a tech company, or against intellectual property infringement if you are a creative company.
In either event, if you have specialized risks, you should find a broker or agent with the specialized experience to help you find the right policy for your startup or small business.
Without a doubt, the best way to find a great broker or agent for your business is to get a referral. Ask your fellow entrepreneurs who they choose to work with. You can also ask around to find the brokers or agents for other businesses similar to yours that have already grown into large companies.
(This article is general in nature and is not legal advice.)
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