If you’re looking to purchase business insurance, it’s not uncommon to hear that the process takes longer than getting an auto insurance quote, even if you’re using the same provider.
In fact, it can sometimes take days or weeks to get a business insurance quote and policy in place, but most people can purchase auto insurance within 24 hours!
Let’s find out why it takes longer to get a business insurance quote than an auto insurance quote—and what you can do about it!
1) The complexity of businesses
There are a lot of different factors that go into getting a business quote. The first is where you’re located: some areas have more crime, natural disasters, and other factors that can increase the cost of your policy.
Then there’s the size of your company: the bigger the company, the higher the risk for claims.
There’s also what type of industry you operate in; some industries have higher risks and will require more coverage.
Finally, how many employees work for you? Each employee increases the risk of an accident on-site. So it’s worth taking all these variables into account when figuring out how much it’ll cost to insure your business.
2) The number of variables
The number of variables in a business insurance quote is significantly higher than in an auto insurance quote.
For example, there are many different types of coverage, such as General Liability or Professional Liability, to pick from.
Auto insurers only need to ask for the make and model of your vehicle’s.
It’s not just about the company; it’s about everyone who might be involved in an incident.
To request a business insurance quote, you’ll also need to provide information on all your assets that could be lost if something happened:
office buildings, equipment like computers or manufacturing machines, inventory like raw materials or finished products; even intangible assets like goodwill and trade secrets.
Again, this data would typically not be requested for car insurance quotes because most cars are owned by private individuals rather than businesses.
3) The need for customization
The need for customization is one of the main reasons that it takes longer to get a quote. In order to provide you with an accurate quote, we will have to ask you a variety of questions about your industry and company size.
Also, different types of coverage will be necessary if your company is in the construction industry or has employees, for example.
A second reason that it can take a while to get a quote is because there are more companies in the market.
Some may offer products that are cheaper but less reputable whereas others may offer higher quality products at a higher price point.
It might take some time to find which option best suits your needs. Another thing to consider is what type of coverage you need.
Are you looking for liability only or something more comprehensive?
Do you want broad coverage just in case something goes wrong or do you want protection against specific types of incidents?
4) The underwriting process
The reason that it takes longer to get a quote for your business is because the underwriting process is more complicated.
To get a quote, most insurance companies will want you to fill out an application and answer questions about your company’s history.
It can be difficult to find this information if you’re just starting out, so give yourself some time and make sure you have it all together before you request a quote.
In addition, many businesses require specialty coverages not found in typical home or car policies.
For example, there may need to be coverage for product liability or workers’ compensation claims.
These coverages are not standard in most personal policies and must be specifically requested when applying for a quote.
5) The claims process
When you have a claim, your adjuster will call you to go over the details of your claim. You can expect to answer questions about what damages are covered and how much they’ll cost to repair.
You may also have to estimate how long it will take for repairs, which will help us determine the value of your claim. We’ll also need a list of people who might be able to help with repairs, such as an electrician or plumber.
After our adjuster has looked into the claim and gathered all this information, he or she will issue a final settlement offer that either you accept or reject.
If we don’t hear back from you within 10 days after we make this offer, we’ll automatically settle the claim for our original offer amount.
6) The review process
Getting a quote for your auto insurance is relatively easy. All you do is answer a few questions, and the company finds a policy that matches your needs.
However, it’s not as simple when it comes to getting an insurance quote for your business.
There are many factors that go into determining the cost of coverage–and there are plenty of things to consider before you even get started.
For example, how much money can the company afford to lose? How big is the risk? What type of business are they in? Is the work completed in-house or out of house?
What types of jobs will they be doing on a day-to-day basis? All these factors can have an impact on what your company pays for their insurance.
The complexity, age, and amount of risks all play a part in determining what kind of rates your company will pay–meaning it may take more time than just answering some questions about yourself and your vehicle.
7) The final approval process
Insurance companies are very thorough when it comes to reviewing a business. They will review your assets, liabilities, and your insurance history.
If you have too much risk associated with your company, they might not be willing to insure you for the amount of money that you need which could lead to an increase in premiums.
Once an insurer approves you, it can take up to two weeks for them to get everything set up and ready for the policy. In most cases, you’ll be required to supply documents like tax returns and financial statements before the policy is issued.
Lastly, different types of businesses will require different levels of coverage depending on their needs so this is something else that needs to be taken into consideration.
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