Your dreams are finally happening; you are about to become your own boss as you begin the process of opening the doors to your own company and build a business in an industry that you know and have a passion for. As you start setting up your business, one key step must be taken as a new business owner and that is getting a quality business insurance quote. Since insurance companies ask for things that startup business cannot provide, such as past revenue and previous insurance losses, it may feel discouraging. However, with the help of an expert insurance agency as well as doing all that you can to prepare with the following guidelines, obtaining commercial insurance for your startup business can be a simple process.

First, highlight your previous experience in the industry for which your business is entering. Many California business owners have worked in the industry before starting their own company, thus gaining knowledge of that particular type of business. Others have gained access to their particular trade through year-long hobbies that then have manifested into a company. Either way, these experiences show that you are familiar with the line of business your company is pursuing. It is also important to focus on how, during these earlier experiences, you had helped these companies grow and/or gain success in some way. By focusing on your previous experiences and the ways you have contributed to a business’ growth, you are showing insurance companies that you have knowledge and expertise in the industry and that you are experienced in helping a business achieve success, thus demonstrating that you are not a high risk for mistakes and/or losses.

Second, present well calculated future projections for your business to give the insurance companies a sense of what it will be like to insure you.  More specifically, your projections will include estimated gross revenue and estimated payroll. Understandably, as a new company, this is not an easy thing to do. That’s why your insurance agent will be able to assess your business more closely and guide you to make the most realistic projections for your company. It is important to project your estimates on realistic expectations rather than what your goals will be to avoid overpaying on your premium once you obtain insurance coverage. This info will suffice for an insurance quote in place of past information on your company because it shows insurance companies your liability exposure; that is what your company’s potential is for making mistakes and/or having losses. The exposures requested will depend on what type of policy you are looking to acquire. A commercial auto quote will look for driver and vehicle information; a property policy will look for building and personal property information; general liability will look for projected gross revenue and gross payroll information; and so on and so forth. Also, for certain industries, such as staffing agencies and farm labor contractors, a business plan may be required.

Third, reduce potential risks in any way that you can because, as mentioned, the less risk your business has the more insurable it will be. You can help lower your risks by focusing on properly training employees and including high quality safety equipment. Another way is to run a risk audit on your business to identify and assess potential risks within your business.

After these guidelines are met, you are more than prepared to show any insurance company that you are a low risk and qualified business and thus you will be able to receive solid insurance quotes for your company. At this point, it is important to choose the right insurance agency to do business with. By choosing a quality commercial insurance agency, such as JVRC Insurance Services, you are allowing your California business to evolve, as JVRC Insurance Services can give you quotes from multiple insurance companies and help change your policy as your business begins to grow and as its needs change. JVRC also provides hands-on customer service and specializes in commercial insurance quotes so you can feel a sense of security for you and your California business.