Save money on your business insurance by shopping around, bundling your policies, and prepaying your annual premium.
Coverage is a necessity when you are running a business. Owners risk having to cover expensive damages and legal claims against their organization out of pocket if they do not have coverage. To put it simply, insurance saves you money and stress, provides benefits for employees, and protects your business from costly damages.
However, overspending on coverage might prevent you from making other, more profitable business investments. If you think you might be paying too much, check out these ten ways to save money on your insurance policies.
1. Shop Around for Better Prices
Do not be afraid to shop around for better prices or services. If you are not happy with your current provider, you can start here to get an instant quote.
Also, get prices from at least a few different insurance companies when purchasing insurance. You do not have to jump on the first quote that you get. Spontaneous purchases are never a good idea, and this is true even when it comes to your company’s protection.
When you are comparing policies, you should look at these few things:
• Is the coverage specific to your business?
• Do you qualify for discounts?
• Do you get rewarded for premium payments?
Additionally, a carrier might decline your business. It is crucial in this situation to keep looking for insurance that matches your demands.
2. Talk to Your Agent
The first thing you should do if you are looking to save money on your insurance is to contact your insurance agent.
Your agent can audit your policy to ensure you are getting the best deal for your business.
An insurance audit should cover the following:
• A description of your business,
• How your company operates,
• The names of people who own and manage your business,
• How many employees your business has,
• Information about subcontractors that you work with, and
• What type of risk exposure your company faces.
Insurance audits are designed to ensure you pay for the right amount of coverage for your business and that you are fully protected.
3. Bundle Your Policies
Policy bundles can save your company money.
You can get the best rates by taking advantage of discounts and avoiding paying multiple deductibles in an accident or catastrophe.
Bundling your policies can save you money, but it can also save you time, and time is money. In addition, when you have more than one policy holder, it can be hard to keep track of different policies, renewal dates, and certificates.
4. Ask About Longevity Discounts
Your insurance company wants a long-term relationship with you and might offer longevity or loyalty discounts.
A good time to ask about loyalty discounts is when your policy is up for renewal.
5. Get a Tailored Package
Your business has specific needs and might operate differently from other companies in your industry.
Get a tailored insurance package designed specifically for your business. For example, a customized package could include all of the following types of policies:
• General liability- protects your company from claims made by others regarding property damage or injuries.
• Worker’s compensation- may be mandatory in your state and protects you and your employees when injuries keep you from working.
• Professional liability- protects your company from errors and omissions.
Commercial auto like personal auto coverage, but for commercial use.
• Tools and equipment- upgrades your general liability policy to protect your tools and equipment.
• Commercial property- covers your business’s property from damage caused by natural disasters, theft, and vandalism.
Business owners- combines general liability and commercial property.
6. Use Best Safety Practices to Avoid Insurance Claims
Does your company have a safety plan? If not, then it is time to get one. OSHA might also assist you in developing a safety strategy, depending on your industry. Making your business operations as secure as you can will ultimately decrease the possibility of employees being sick or wounded at work.
Safety plans are not all for show. But they work, and you can reduce your number of claims by implementing a safety program, which will save you money.
Some insurance companies even offer premium discounts for businesses with a safety program, so be sure to ask your insurance agent about this.
7. Protect Your Equipment from Loss or Damage
Protect your equipment and vehicles from damage by storing them safely and securely.
Routine maintenance is another way to ensure that your equipment is in top working order. In addition, by avoiding small claims, you can keep your insurance premiums from going up.
8. Find Out How a Higher Deductible Can Lower Your Premiums
Usually, the higher your deductible is, the lower your premiums are. So you can save money if you aren’t paying money every month towards premiums.
Some people would rather have a large deductible and pay less every month. But, on the other hand, a large deductible might not work for you if you want the peace of mind that a low deductible represents.
Be sure you do not set your deductible so high that you cannot pay it when you need your policy’s protection. On the other hand, if you choose a high deductible, consider setting aside the amount of the deductible in a savings account so that you can have the peace of mind that low deductibles offer.
9. Make Sure You Have the Right Coverage
When you do not have the right coverage, you leave your business open to risk. For instance, if you are not upfront about who uses your commercial vehicles, you risk being liable for damages if there is an accident.
Talk to your insurance agent, and be upfront about how your business operates to ensure you are covered.
10. Use the Same Company for All Your Insurance Needs
It can pay to stay with the same company for all your insurance needs. It makes it easier to update your policies, make payments on time, and avoid hassles when trying to file a claim.