Business insurance is a necessity for many businesses. No matter how large or small your organization is, a good policy can offer protection against almost everything. A good policy also offers your business a cost-effective way to manage its risks and any potential losses. Whether you are currently in the market for an insurer or looking to save money on an existing policy, it is in your best interest to research your options to keep your expenses down. Here are some ways you can save on your business insurance.
The price of insurance varies from one insurance company to the next, so it is worthwhile for you to shop around. Contact different companies that specialize in business insurance and get quotes. Arrange a meeting with their agents so you can get a feel for their services. That way you can decide which one is best capable of meeting your needs and budget.
Go Over Your Options
Some insurance policies cost more than others. Work with your insurer to determine which type of policy is best for your business. If your organization is on the small to medium side, you may be better off purchasing a business owner’s policy. This type of policy has several types of coverage rolled into one and is often much cheaper than you purchasing them individually.
Raise Your Deductibles
If you want a lower premium, raise your deductible. A deductible is how much you are required to pay before your insurer pays on any claims you file. Because it is unlikely you will file a claim on small losses, you can save more money upfront.
Develop a Risk Management Plan
While it is important for you to lower your premiums so they are more affordable for you to manage, it is equally important for you to consider the bigger picture while trying to lower the amount of your insurance. Analyze how you run your business so you can identify steps you can take to minimize risks. For example, invest in creating a healthy workplace culture so you can minimize the number of worker’s compensation and harassment claims that are filed. Taking appropriate action now to minimize your organization’s risks can enable you to keep your expenses and business insurance costs low.
Analyze Coverage Periodically
It is a good idea for you to examine your business and insurance needs at least once or twice a year to eliminate or add coverage. The worst thing you want is for your business to be under-insured and not have sufficient coverage when it is needed. You also don’t want to be over insured and paying for coverage you really don’t need or can’t afford.
Invest in Safety
You may be able to reduce your premiums by increasing the security at your workplace. Consider adding security guards, security cameras and fire prevention systems to lower your premiums. Some insurers encourage their policy holders to enhance their security measures by offering them lower insurance costs in the form of cost reduction programs.
Depending on the nature of your business, you may be able to increase your savings by bundling multiple policies together. If your business requires the use of automobiles, ask your insurer if it’s possible for you to combine your auto and business insurance together for a better discount.
Pay Your Bills on Time
Insurers use past financial history to determine what kind of rates to offer you. If you have a history of delinquent payments, there’s a good chance your insurer is going to see that activity as a risk and charge you a higher premium. Work towards improving and maintaining a good credit profile and never let your business insurance lapse for nonpayment.
The more you work towards improving safety and managing your company’s risks, the easier it will be for you to achieve lower business insurance premiums.
The content on our website is only meant to provide general information and is not legal advice. We make our best efforts to make sure the information is accurate, but we cannot guarantee it. Do not rely on the content as legal advice. For assistance with legal problems or for a legal inquiry please contact you attorney.