An insurance broker explaining an insurance policy’s terms to a client

20 Questions to Ask Your Insurance Broker

kase
Oct 20 2023

For business owners, the world of commercial insurance can seem complicated.

While managing internal processes can give you enough stress, external incidents—such as accidents or lawsuits—can lead to bankruptcy. This is why you need to have your bases covered and purchase insurance solutions to protect your finances.

To help you get the coverage you need, we’ve prepared a collection of insurance questions you can ask your broker before purchasing a plan.

General Policy-Related Questions

Start by ensuring you have a general understanding of your coverage. These are high-level questions that every insurance company should be prepared to answer.

1. What Types of Insurance Do I Need?

Begin by discussing your business operations. The type of insurance policies and how much coverage you need will be determined by your business’s specific circumstances, such as your location, size, the number of employees you have, and more. Your broker will take all of this into consideration when answering this question.

2. How Are Claims Handled?

Ask this question to learn how to file a claim, what the typical timeline resolution for a claim is, and the usual documents that need to be prepared before filing.

For instance, car insurance claims can be tricky because they require proper documentation on your end. This is why it’s crucial to be aware of how claims are handled and processed by the insurance company before the time comes.

3. How Does This Insurance Policy Work?

Make sure that each insurance policy—including its liability coverage and limits—is thoroughly explained to you. Ask this question and follow-ups to get detailed information on how each policy functions, its premiums, its deductibles, and if there are any specific terms and conditions you should know.

4. What Happens if I Can’t Pay My Premium?

You should always be aware of the terms and conditions. This includes understanding premium payment options and the consequences of a missed payment.

You can also ask your insurance agent if it’s possible to make a one-time annual payment or if monthly or quarterly payments are allowed. Additionally, ask if grace periods are offered for missing monthly payments during a time of crisis.

5. Can I Make Changes to My Insurance Policy?

It’s also crucial to ask about the flexibility of your insurance policy. For example, you’ll want to know if there will be penalties or fees for adjustments as your needs evolve.

 Someone signing a paper on a clipboard while another person inspects a car

Policy-Specific Insurance Questions

If you’ve decided on the kind of policy you want and asked the previous five questions we outlined, then these next sets of insurance questions (categorized by type) can broaden your understanding of your chosen policy.

Auto Insurance

When looking into auto insurance policies, it’s important to ask what will happen if you get into an accident—whether it’s your fault or not. Ask the following insurance questions:

1. What factors affect my premiums?

2. How will at-fault/not-at-fault accidents affect my premiums?

3. What is the claims history of my vehicle?

Life Insurance

Ensure that you understand the different types of life insurance policies available. You can often choose between a permanent life insurance policy, term life insurance, whole life, universal life, and more.

Ask the following once you choose the life insurance coverage that works for you:

1. How does the underwriting process work?

2. What is the cash and surrender value of this life insurance policy?

3. What are the policy exclusions and riders?

Property Insurance

If you’ve decided to get property insurance, we recommend asking the following insurance questions to your broker:

1. What safety measures can lower my premiums?

2. Does my policy cover replacement cost or actual cash value?

3. How does my coverage handle high-value items and personal liability?

Landlord Insurance

Renting out your property has risks. Landlord insurance—or another type of renting-specific coverage—can help. Be sure to ask:

1. How is loss of rental income coverage handled?

2. Does landlord insurance cover tenant-related issues?

3. What are the requirements for tenant screening?

The words “insurance coverage” are in bold, with an approval stamp on top of it.

Surety Bonds

Sometimes insurance providers also offer surety bonds for businesses or individual contractors. If you’re working in an industry where bonds are needed—such as the construction or freight forwarding sectors—asking these questions will help you understand the process of getting bonded:

1. What is an underwriting process?

2. How will my credit score or other financial liabilities affect my surety bond cost?

3. What happens if a claim is filed?

Surety bonds come in many forms, so make sure your surety and bond insurance provider explains what each bond represents and how this affects your business.

Insurance Questions Answered at KASE

At KASE Insurance, we’ll happily answer any questions you have about your coverage—we want you to know it as well as we do.

Whether you’re opting for an auto insurance policy, property insurance, or a surety bond, you can count on us to be honest and transparent. We’re in this together, and will only be happy with our agreement if you’re happy with it, too.

Contact us today or get a quick quote to get started!

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