Requesting A Business Insurance Quote? Your Marital Status Matters

When you submit a quote request for business insurance, you expect the representative to ask you plenty of questions about your business. However, a question you might not expect is one about your marital status. While it might seem strange, it is common for insurance companies to inquire about your status in order to provide an accurate quote. Learn one of the reasons why it's important.

Stability and Responsibility

When a person gets married, they add some level of responsibility for their partner onto their plate. This act is both admirable and often shows responsibility. When you also factor in that the person's spouse is also taking on this added responsibility, it can indicate that the person has more stability. Responsibility and stability are two factors that insurance companies like. As such, you may secure a lower rate as a result of your marriage.

Credit History

If the insurance company asks your status and asks if you want to include your spouse's name on the policy, their credit history will play a factor. Even if you are the primary business owner, the moment you put another person's name on the policy as a holder, the insurance company has a right to review their credit and assess a risk based on their findings. If your spouse has a clean history, this could lower your risk and premium, but if it is a lower score, the opposite could occur. 

Insurance History

If you do decide to move forward with adding your spouse to the quote request, his or her insurance history will also play a part. Insurance companies tend to place higher risk levels on individuals who have a history of filing a higher number of claims. Keep in mind that these claims are totaled across all insurance platforms, such as auto and home. If your spouse has filed several claims, it may impact the cost of your business insurance.

Business Rights

Another reason why this question is asked is to understand what rights to the business your spouse has. For instance, for legal purposes, some people decide to enter into the business as a joint venture, even if only one of them is running the business. In this type of scenario, you are typically required to also list the other business owner on the policy, so this is one reason the insurance companies always ask.

Remember, insurance companies use a variety of factors to help ensure they provide personalized quotes for their clients. However, should you have any concerns about what information is requested, be sure to contact a commercial insurance professional.