The purpose of insurance coverage is to provide protection against those losses that may occur which the individual or business could not afford. Therefore, there must be a reasonable correlation between the cost of the insurance and the probability of the loss occurring. If the probability of sustaining the loss is exceptionally low, then so should the premium to cover such a loss.
When shopping for insurance coverage we suggest that at least three insurance agents be interviewed. You may want to interview at least one agent who represents more than one insurance company. During the interview, investigate ways available to reduce the premium, such as having a security system installed, and any discounts available.
Have the insurance agent work with you to determine what insurance requirements you may have. Virginia state law requires workers' compensation insurance for employers with at least three employees. Under your lease or loan agreement, your landlord may require liability insurance or a lender may require insurance on property used as collateral. Also, have the agent review what coverage the business may need that is not required by law, such as, group term-life, disability, multi-peril property and medical.
Premiums for workers' compensation at set by state law, however, you often have room for negotiation and costs may vary on other types of insurance coverage. A good insurance agent will work with you to save money.