There are different kinds of insurance depending on the business need:
Because insurance is critical for a small business, you want to be sure you're buying the right insurance for your company.
The most common method of buying insurance is through an advisor or broker. Advisors can analyze your business, help you determine what you really need, research coverage options, offer cost control advice, assist in the claims process and direct you to other professionals if you need help outside their area of expertise. In short, the advisor is a key player in your financial picture.
Most business issues need the expertise of more than one profession: for example, setting up the shareholders’ agreement or purchasing insurance to cover a business loan. If your accountant has been handling your business affairs, that professional will likely be able to give valuable advice to you. It’s also important to consult with an advisor with experience in business issues and life insurance. An advisor often won’t charge for consultations and can work with your accountant and lawyer when the need arises.
Other entrepreneurs are a good resource, as are trade groups, your local Chamber of Commerce and other professional organizations. Look for an advisor who knows business and will take the time to understand your business.
While advisors will sometimes handle only commercial insurance or only life and health insurance, try to deal with an advisor experienced in the segment of insurance you need. You should select advisors who work with strong, established insurance companies that have good claims records.
Once you've selected an advisor, be willing to invest the necessary time to work with that professional to understand your options in detail and determine the proper coverage for your needs.
And don't let the relationship end there. Keep your advisor informed about any claims you file or developments in your business that may require a change in coverage.
Group plans are typically available for groups starting with three individuals (not from the same household). The business is required to contribute a certain percentage towards the plan. With small groups, the structure of the plan tends to be limited to very few options; however, a small business may consider: