18 Questions to Ask Before You Buy Small Business Insurance
Most coverage disputes trace back to a question nobody asked at the application stage. These are the eighteen worth asking, grouped by what they protect you from.
- Ask what is excluded before you ask what it costs — exclusions define the policy more than limits do.
- Match limits to your contracts, not to the state minimum or your comfort level.
- Understand how and when premium is audited, because that is when the real price is set.
- Confirm who handles a claim, how fast, and whether defence erodes your limit.
- Ask your agent what they are licensed and appointed to place — it determines which markets you actually see.
About coverage scope
About limits and contracts
The right limit is a contract question, not a preference. Pull your three most demanding contracts and read the insurance exhibit before choosing anything.
About price, audits and payment
About claims and the relationship
The three answers that should worry you
"Don’t worry, you’re fully covered." No policy covers everything, and an agent who says otherwise has not read your exclusions with you.
"We’ll sort the details at claim time." Details are the policy. Endorsements, retroactive dates and additional-insured wording are decided at binding, not at loss.
"That’s just how the market is." Sometimes true, but it should be demonstrable. Ask which carriers were approached, which declined, and why — a real broker can tell you.