When you have a business, you want to keep it protected with insurance. However, insurance quotes can be confusing and overwhelming. There are many things that you need to keep in mind, and the jargon can be hard to decipher. Here are some things to know about understanding your nursery insurance quote.
Understanding Nursery Insurance
You know that business insurance is vital for your nursery. These policies are a contract between the insurance company and your business. When you pay them a premium, they will financially compensate you for business-related losses. Business insurance can protect your nursery from damage and theft. If someone breaks into your business and damages equipment, you are covered with an insurance policy. For those who have people walking on their property, you need to remain protected from legal liabilities that stem from bodily injuries or property damage.
Getting a Business Insurance Quote
Before you get your business covered, there are a few formulas that your carrier will use to create a quote for you. The company will evaluate risk factors in the rating manual. These risk factors can include your business location or age of the policyholder. All these factors can increase your chance of filing a claim, and they are based on historical trends and analytical models. These factors are checked off a list, and your quote will be the total of those risk factors. Over time, your insurance company might increase your premium due to the demands of your coverage.
Look for the Carrier Rating
When you look at the top of the insurance quote, you need to know whether your carrier is “admitted” or “non-admitted.” Along with that, you will see the carrier’s A.M. Best rating that is similar to letter grades. You want to find a carrier with an A or better score.
With an admitted carrier, the company is recognized by your state to underwrite insurance policies. These companies must abide by state regulations, and the state will back them if the company cannot cover a claim. If you feel that your carrier did not handle your claim properly, you can always appeal to your state.
A non-admitted carrier does not have the same protections from the state as an admitted carrier. They also don’t have to comply with state regulations either. You should know that a non-admitted carrier does not mean they are a substandard carrier. Some of their coverage can be better than admitted companies. When choosing an insurance company, you want to select a carrier with the highest rating.
Know Your Liability Limits
Your Business Owner’s Policy (BOP) will have liability limits that deal with general liability, completed operations, products, and personal injury. Many of these policies have the liabilities already listed in the quote, but you will want to check that your specific plan will cover you.
With an inexpensive policy, you will have minimal coverage for your business. Many of these policies act like a premises liability policy, and it might not cover you for all accidents or mishaps at your nursery. If you are selling a product that causes a third-person personal injury, you will want to make sure that all those liabilities are protected.
When looking at your liability limits, you might notice two terms: aggregate and per occurrence limits. The aggregate limit is the amount of policy that pays out within a policy year. When you reach the limit, your policy will not pay out on any more claims. Per occurrence is the limit that can be brought per claim. These policies will lump all claims together within the same transaction. Once again, if you exceed the limit with one occurrence, then your plan will probably not pay out any other claims.
You can extend these limits with an umbrella policy. In most cases, these additional policies are cheaper than extending your policy.
Check Your Property Limits
With any insurance policy, you will need to check those property coverage limits on your quote. Many of these property protections are combined to make it easier to underwrite for your carrier. You always want to look at the Business Personal Property (BPP) line. It will cover all the items at your specific location to a certain limit. At this time, you need to make sure that all your nursery essentials are covered with your policy. Some policies will exclude some types of equipment. Before you sign the final document, you will want to be certain your property is covered.
Payment Options Can Vary
Depending on your carrier, the payment options will vary between billing. In some cases, they might have online portals that will give you access to your account. Your policy will not be active until you have paid your bill. Many companies will allow you to set up a direct billing system, and you can often pay in installments of 2, 4, 6, 10, or 12 payments. You should check if there is a service fee for your billing cycle.
Retention Means Deductible
You might have heard the term “retention.” This word is another way to say deductible. Many companies will interchange these terms. In either case, this is the amount that is your responsibility before the insurance will pay out for a claim. You always want to make sure that the deductible is one that you can afford, and that it will not bankrupt your nursery to cover an insurance claim.
Get a Business Insurance Quote for Your Nursery
You know that you need to keep your company protected from damages, lawsuits, and other problems. When you get a quote, it can be challenging to understand. With the Lyman Agency, we can help you sort through the jargon and select the right quote for your business needs. You need to find an agent that understands your business and can answer all your questions. Through all the steps of your nursery business, we are here to help you to stay protected.
For those who want to learn more about nursery insurance quotes, take a few minutes to fill out the contact form