Finding the right insurance for your business is hard. In fact, it can be a full-time job looking at all of your different options and getting quotes. But with bigger insurers comes bigger price tags – and small businesses may not have the budgets of their corporate rivals. Everyone deserves good insurance coverage; here are 6 top tips from RiskCoverage on how to save money on your business insurance:
Shop around for coverage.
This is the best way to keep the cost of your insurance coverage down. The Internet makes it easy to compare quotes from multiple insurers at once, use this to your advantage when looking for policies. Also, remember that cheaper isn’t always better. Make sure you’re getting the coverage you need, even if it costs more than other policies. The last thing you want is to find out that your policy doesn’t cover something major and have to pay out of pocket because you chose based on price alone.
Increase deductibles for greater savings.
The deductible is the amount that you must pay out of pocket before your insurance kicks in. By increasing your deductible, you can reduce your monthly premium payment by as much as 30 percent for many types of coverage. Check with your insurance carrier about what their recommended deductibles are and make sure you have enough cash on hand to cover the deductible in case of an accident.
Upgrade security and safety equipment in the workplace.
It’s important for businesses to keep their workplace safe and secure, especially when they have employees or customers coming on-site regularly. If you choose security measures like an alarm system or surveillance cameras, or if your business has good safety records, it may be possible to reduce your premiums by 5-10%. You may want to get recommendations from your insurer about what would work best for you on this front.
The more effort you put into reducing your risks, the lower your insurance premium will be. You might have to pay upfront for new equipment, but if it lowers your premiums over time and reduces your overall risk for loss, it’s well worth it.
Pay upfront.
Many insurers will offer discounts for businesses that pay for their policies in advance, rather than through monthly installments. Instead of breaking up your payments, try paying for the full year or at least the first 6 months. The amount of discount would be determined by your insurer when setting up your policy.
Consider combining your coverage into a package policy.
You can save money on your business insurance by combining your coverage into a package policy such as BOP coverage. A Business Owners Policy (BOP) combines general liability, property, and business interruption coverage in a single policy, which can reduce the cost of your premiums.
Avoid unnecessary coverage
One of the best ways small businesses can save on insurance is by avoiding unnecessary coverage. Remember, not all businesses require the same type or amount of insurance. Do some research or talk with your agent about what type of insurance your specific business requires and then determine which policies you don’t need. Even though this may seem like an easy way to save money, it’s important to remember that cutting out the wrong policy could leave your small business vulnerable in the event that something happens.
The internet is bursting with suggestions for saving money on insurance, and many of them are worth your time. Finding the best option for you and your business will be a matter of weighing the risks associated with each choice. There are advantages to going with a local provider, but there’s no reason to rule out online options either. Doing the right research can help you find the right insurance plan for your company at the best possible price.
Looking for more information? Check out our article How To Choose The Best Business Insurance Policy For Your Small Business
