Personal Insurance vs. Business Insurance: 6 Reasons to Consider Switching

When I was the CFO of a company, we made the switch from an insurance carrier that specialized in homes and small businesses to a true commercial insurance company. I talked with my friend, Brent Westhoven at Beimdiek Insurance, about the differences between a commercial insurance company and one that works more with personal and small business coverage. I used Brent a few years ago when I made the switch and I use him now for my CPA firm. Here are the top differences and reasons you should consider if now is the time to switch insurance for your growing company.

1. If you have vendors that require proof of insurance on a frequent basis, a commercial company like Beimdiek has a whole department that responds to those requests faster than a small agency does.

2. If you have a fleet of company vehicles or change vehicles more than once or twice a year, someone who is used to managing insurance for a fleet is going to make the paperwork much less of a hassle and get you adequate coverage. In our case, they actually saved us a little bit of money here.

3. If you need additional services like OSHA training, a sophisticated understanding of your industry and how insurance works, or anything along those lines, consider upgrading to a commercial carrier. They are larger than a lot of smaller insurance offices and because they specialize in serving businesses, commercial brokers like Beimdiek can offer other services that you need all in one place. Whether it's health benefits for your team or a more nuanced and sophisticated approach to worker's comp, a true commercial carrier will be set up to help you with these things.

4. Paying for insurance without having the proper coverage is a waste of money. Our insurance proposal was huge and at each renewal, I was glad I had a specialist who could walk through it with me to make sure I understood what changed.

5. Expert advice on making sure the insurance coverage you have is the insurance coverage you actually need. This can be a lifesaver. In our case, there were some things that were not even on our radar which saved us thousands of dollars, like, having employee theft and insurance.

6. We talk a lot about the extended team for your business, which usually includes your lawyer, banker and CPA. In today's business environment, you need an insurance agent who goes beyond just the transaction to be one of your trusted team members in protecting your business. Once your business scales past some point, in my experience, it's usually between one and two million, it's time to seriously consider upgrading your insurance. It will either cost a little more or little bit less; but even if it costs more, it's an investment in protecting your business the right way, as well as saving you time and hassle so you can focus on your growing business.