The Key to Buying Liability Insurance

There’s a lot of detailed information an insurance agent needs when preparing a business liability quote for your company. Before you meet with an agent, it’s good to know what to expect – and how to prepare for it.

"We ask our clients to be ready to share as many details as they can," says Keith Israel, Sales Manager at Nationwide. "An open discussion about all aspects of your business helps us in several ways. It gives us better insight into who you are and what you do, which we need to create the right coverage and limits that provide the best protection. It also helps us give you a quote faster."

For example, you’ll be asked to talk openly about your company's revenues for the past several years, as well as what's projected for the future. Your agent will also ask about the type of company you run, how many people you employ, the area where your business is located and other factors. (And our advice is to always be as forthright as possible, so a policy can accurately reflect the realities and risks of your business.)

Beyond these standard questions, however, are some details clients are sometimes surprised to be asked – and are often unprepared to share. Here’s an overview of what to expect:

• Your agent may ask about any prior losses your company has experienced. Keep in mind that a loss doesn’t necessarily mean your premium will be higher. (Nationwide, for example, evaluates each customer and loss event on a case-by-case basis.)
• Provide a list of company officers and their positions if different from the owners of record. Be ready to discuss how many years of experience your senior executives have in the industry and at your company. Typically, the longer and more successful the company’s overall record, the better the risk for the insurer and the lower the premiums.
• Be prepared to share your annual sales and payroll, and provide a break down of the number of your employees who are full time and part time, or if you employ any subcontractors or consultants. And depending on your business, you may be asked about your building space and the total area of the building you occupy. Some of these items are used to determine the premium you will pay and others are just a part of the underwriting review process.
• Bring a copy of the declaration page of your current general liability insurance policy (if you have one) to give the agent an idea of your new or changing insurance needs.
• Whether you are in the retail, wholesale or manufacturing business, you should be prepared to discuss the details surrounding the products you handle. Companies in the service and construction industries need to reveal all the details of current and future operations.
  You be asked to provide your Social Security or Federal Tax ID number so that a credit check may be obtained.

Rest assured that all of the information you provide to the agent will be kept in complete confidentiality. None of your contact information is ever sold or given to others.

Contact a Nationwide agent today, and learn why this is one of the easiest business decisions you can make today.