It’s tempting to bind whichever quote comes back cheapest. Most of the time, that’s a mistake, because premium is the easiest number to compare and the least useful one on its own. Here’s what’s worth checking first.
1. The actual coverage limits
Two policies with the same premium can have very different limits per occurrence and in the aggregate. Make sure the limit actually matches your exposure, not just what fit the budget.
2. Exclusions specific to your industry
Generic small business policies often carry exclusions that quietly gut coverage for specific trades, contractors excluded from certain job types, restaurants excluded from liquor liability, healthcare practices excluded from specific procedures. Read the exclusions section before you read anything else.
3. Who’s actually on the certificate
If a client, landlord, or lender requires you to name them as an additional insured, confirm that’s actually reflected on your certificate of insurance, not just verbally agreed to. This is one of the most common gaps that surfaces during a claim.
4. Deductible structure, not just the number
A $5,000 deductible per occurrence is very different from a $5,000 aggregate deductible across all claims in a policy period. Know which one you’re signing up for.
5. Renewal terms
Ask what happens at renewal. Is the rate locked for a term, or does it reprice based on claims history and market conditions? Knowing this in advance means fewer surprises twelve months from now.
None of these questions require an insurance degree to ask. They just require asking them before you sign, not after a claim gets denied.