I recently came across this question on reddit:

Recommendations for Business Insurance for a New Autism Center

Hi everyone,

I’m in the process of opening a new autism center and need guidance on finding the right business insurance. Specifically, I’m looking for:

• Professional Liability Insurance (Coverage needs: $1 million per occurrence / $3 million aggregate)
• General Liability Insurance (Coverage needs: $1 million per occurrence / $3 million aggregate)

I’m new to this process and wondering:

1. Should I work directly with insurance companies or through brokers?

2. Are there any insurance companies or brokers you’d recommend, especially those based locally or experienced with autism centers or healthcare organizations?

Any advice or personal experiences with securing business insurance for a similar setup would be greatly appreciated. Thanks in advance for your help!

Here is my response:

Hey there,

First of all congrats!

1. If you don't like dealing with a third party, direct may be more convenient since you are dealing with only one company. However, only certain companies allow direct to consumer so your options are limited. Prices tend to be higher as these companies heavily advertise.

A local broker (independent agency) will have access to several companies that sell on a wholesale basis. Consumers only get access through brokers. Prices are typically more competitive as there is a larger pool of companies competing for your business.

In theory, representatives from both direct sales and brokers should be able to guide you with your insurance needs specific to your industry. However, sales reps in retail tend to have high turnover. An independent agency owner is likely not going anywhere for a while. Long term relationships do matter, which I will address in question 2.

2. A quick google search for independent insurance agencies, specializing in business insurance/commercial insurance, and then calling at least 3 would be the best place to start. Find someone who is willing to have a conversation instead of treating you like a lead.

Even if you only want those two specific policies, you will want an agent that will illuminate all potential risks, so you will know what your options are.

Liability insurances are the bare minimum requirements and would definitely be the most economical way to start your business.

It will be good to know what other types of insurances are available as your business grows and becomes exposed to more risks.

For example, a business owner's policy may be a great next step if you begin to acquire business assets/equipment and you become profitable. This policy package includes general liability insurance + business property insurance (physical assets) + Income insurance (revenue).

Circling back to question 1, since your business is dynamic, your insurance needs also change. It is nice to have an agent that can recall your history and grow with you as well. An established brokerage is more likely to provide that type of service over a corporate structure that sells direct to consumer.

Good luck!