2025 insurance buying guide: April 2025 newsletter
Business insurance buyer’s guide: What and how
In light of, well, literally everything, businesses of all sizes are reassessing their risk management strategies and insurance coverage before their renewal date.
Finding the right insurance for your business can be a complex process, requiring careful consideration of your specific risks, industry requirements, and budget constraints. The decisions you make during this process can significantly impact your company’s financial security and operational resilience.
In this month’s newsletter, we’ll walk you through the essential steps of shopping for and purchasing business insurance. From identifying your unique risk profile to finalizing and implementing your policy, our goal is to demystify the insurance buying journey. We’ll also share industry insights on emerging trends that are reshaping how businesses approach insurance in 2025.
In a marketplace filled with options and complex terminology, having a structured approach to insurance purchasing can save you time, money, and pitfalls from potential coverage gaps. This month, we’ll dive into making your insurance buying experience more strategic and effective.
Let’s get into it.
- What’s going on?
- Building your coverage strategy
- From selection to implementation
- The future of insurance purchasing
- What’s new from Embroker
What’s going on?
81% of startups have experienced a cyberattack — Embroker
According to Embroker’s 2024 Cyber Risk Index Report, 81% of startups surveyed have experienced a cyberattack in the past year, up from 78% in 2023, and 67% in 2022. This trend underscores the growing threat, and the need for businesses to invest in robust cyber risk management and insurance policies.
Underinsurance crisis costs businesses millions in claims — Insurance Business Magazine
Chris Davis at Insurance Business Magazine interviewed Ana Mello, commercial account manager at Summit Commercial Solutions, on the growing concern of “underinsurance.” They note that while coverage limits aren’t keeping up with inflation, premiums are. This highlights a critical disconnect that businesses must address to avoid significant financial exposure.
Tariffs and global trade: the economic impact on businesses — McKinsey & Company
Businesses are facing a period of economic uncertainty as new tariffs and trade restrictions reshape global commerce. Forward-thinking business leaders can weather the storm — and even flourish — by focusing on key strategies for success.
The insurance shopping process: Building your coverage strategy
Finding the right insurance coverage requires a methodical approach to identifying your risks and understanding what the market offers to address them.
Key points:
- The average business needs 2-5 different insurance policies to be adequately protected.
- Many small businesses report being underinsured, according to Insurance Business Magazine.
- Taking time to properly assess risks before shopping can help reduce premium costs.
Step-by-step shopping guide:
1. Risk assessment
- Conduct a comprehensive analysis of your business operations to identify potential risks.
- Categorize risks by severity and likelihood to prioritize coverage needs.
- Consider industry-specific exposures that require specialized coverage.
2. Coverage research
- Identify which insurance types address your specific risk categories.
- Research industry benchmarks for coverage limits in your field.
- Review regulatory requirements that may mandate specific coverage types.
3. Market exploration
- Investigate carriers with expertise in your industry.
- Determine whether a broker, direct carrier, or digital platform best suits your needs.
- Gather preliminary quotes to establish a budget baseline.
4. Policy comparison
- Create a standardized checklist to compare offerings across providers.
- Focus on coverage limits, exclusions, and endorsement options rather than just premiums.
- Evaluate carrier financial strength ratings and claims satisfaction scores.
Insurance consideration: When shopping for coverage, consider the total cost of risk rather than just the premium. A slightly higher premium that provides significantly broader coverage or lower deductibles may represent a better value for your business in the long run.
The insurance buying process: From selection to implementation
Once you’ve completed your shopping research, the process shifts to finalizing and implementing your selected coverage.
Current situation:
- Digital transformation has streamlined the insurance buying process, with the vast majority of commercial policies now available through online platforms.
- Verifying coverage limits and terms has become increasingly important, with many businesses citing discrepancies between expected and actual coverage.
- Proper implementation of risk management recommendations can significantly reduce premiums at renewal.
Step-by-step buying guide:
1. Final selection
- Request formal proposals from your top insurance options.
- Clarify any ambiguous policy language or coverage questions.
- Negotiate terms, including premium payment schedules and multi-policy discounts.
2. Application process
- Gather all required documentation, including financial statements and loss history, as well as past claims.
- Complete applications with thorough and accurate information to avoid future coverage issues.
- Prepare for potential underwriting questions or inspections.
3. Policy review
- Carefully review all policy documents upon receipt.
- Verify that all negotiated terms are correctly reflected in the policy.
- Create a summary of key coverage provisions, exclusions, and claim reporting requirements.
4. Implementation
- Distribute relevant policy information to key stakeholders in your organization.
- Set up calendar reminders for premium payments and policy renewal dates.
- Implement any required risk management measures specified by the insurer.
Risk management tip: Create a centralized digital repository for all insurance documentation, including policies, endorsements, certificates, and correspondence. This ensures easy access during a claim situation when time is of the essence.
The future of insurance purchasing: Digital transformation
The insurance buying journey is evolving rapidly with technological advancements reshaping the customer experience.
Notable aspects:
- AI-powered risk assessment tools are reducing the time needed to identify coverage needs.
- Blockchain technology is beginning to streamline policy verification and claims processes.
- Usage-based insurance models are gaining traction, allowing businesses to pay premiums based on actual exposure.
Business insight: While technology continues to transform the insurance buying process, the fundamental principle remains unchanged: A thorough understanding of your risks and careful matching with appropriate coverage options is the path to success. Digital tools should enhance, not replace, thoughtful risk management planning.
What’s new from Embroker?
Upcoming events, stories, and more
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