Tips For Getting A Small Business Insured And Bonded

Running a small business can be fun and successful, but it is important to protect yourself from personal liability. In addition to carrying appropriate insurance, you may have clients who refuse to work with you until your company is bonded. That is always the case when working with a government agency, such as a city contract. You can obtain insurance and bonding in just a matter of hours, if you remain focused on the task.
Step 1
Create a list of services your company provides its clients. Bonding is based on services performed and provides a guarantee of payment for any issues that arise such as a contractor employee committing theft or doing damage on the client's property. A bond also guarantees that you will satisfactorily perform the work outlined in the contract within the contract's time line. A list of what services your company provides will allow the bonding company to better ascertain the premium for your company bond. It is important to be honest on the bond application. This will prevent any chance of the bond company refusing to pay if you ever have a claim.
Step 2
Contact a bonding company for a quote. Find bonding companies online or in the phone book. Interview several to choose the agent you feel will work best with you. Ask for price quotes and bond terms so you can do a comparison.
Step 3
Submit the requested information to the bonding company of your choice. The information usually includes the name, age and Social Security number of each employee. Once you receive the bond, you will pay premiums and receive a certificate of bonding that you can copy and hand out to potential clients.
Step 4
Make a list of the different types of insurance you should obtain. At minimum, you need to look at liability, property damage and auto, if you have employees driving for any reason.
Step 5
Contact local insurance carriers specializing in commercial insurance. Ask each of them for prices on individual types of coverage as well as what it will cost for you to bundle them in a comprehensive package. Examine issues such as deductible, claims process and customer service attitudes, not just price.
Step 6
Pay premiums for your coverage. Typically, you are allowed to choose to pay on a monthly, quarterly, semi-annual or annual basis. Remember to have your insurance needs reevaluated every few months to be sure you are maintaining the correct amount of coverage. Each time you hire a new employee who will drive on the clock, remember to add that employee to the insurance. This will require a copy of each driver's license and driving record report.