How Can I Save Money On Business Insurance?
Whether or not a business needs insurance really isn't open for debate. If you want to keep your doors open, it's imperative you have a Business Insurance policy in place.
Without the proper insurance protection, a single accident can result in a major lawsuit that can spell bankruptcy. The challenge, then, becomes selecting the right insurance provider and determining the coverage you need while saving as much money on annual premiums as possible.
Comparison Shopping for Business Insurance Leads to Savings
Insurance prices can vary from company to company. When shopping for insurance, the first step you need to take as a business owner is to locate several brokers or agencies that specialize in the type of business insurance your company needs. This can be easily achieved by going online and requesting free, no-obligation Business Insurance quotes. It's suggested you receive quotes from multiple insurance providers and compare the insurance policy features and premiums to determine the coverage that best fits the needs of your business.
A Higher Deductible can Lower Your Business Insurance Premium
A deductible is the amount a business must pay before the insurance provider will make payments on a claim. As a rule, the higher the deductible is (or the more the business must pay first), the lower the premium will be. In determining the deductible that's right for you, you should weigh the costs of paying a higher premium year after year with the cost of paying a higher deductible should you end-up filing a claim.
You Can Save Money with a Business Owners Policy
A package policy such as a Business Owners Policy (BOP) is typically less expensive than a self-designed plan. BOPs provide all the standard coverage a business needs including Property Insurance, Liability Insurance and Business Income Insurance that protects the company from loss of revenue after a catastrophic event like a fire or flood. The business may still require additional riders for specific, non-standard coverage and these will cost extra. However, the overall savings will still be there.
As Your Business Grows, Your Insurance Needs Change
Remember that once you have conducted the necessary research and selected an insurance agent who represents a stable company, listen carefully and take their advice to heart. Besides taking good counsel from your agent, you should also be sure to keep your agent fully apprised of any changes within your business that might necessitate changes to your insurance coverage. Such changes may include: adding employees, expanding your business, increasing your inventory or materials or purchasing major equipment such as tools or vehicles.
Risk Reduction Measures Can Save You Money on Your Business Insurance
Consult your agent about additional price discounts your business may qualify for by installing safety improvements such as sprinkler systems, fire alarms, smoke detectors or intrusion alert security systems. Since these safety devices lower the provider's overall risks, you may be rewarded with a meaningful discount on your Business Insurance premium. Other cost reductions may be secured from certain disaster protection schemes and company steps to enhance employee safety.
Buying a Business Insurance policy can protect the business you've worked so hard to create. Without Business Insurance, a single accident can destroy your business. Fortunately, comparison shopping, increasing your deductible, buying a package policy, reviewing your policy with your insurance agent and employing risk reduction measures can all lead to savings on your Business Insurance premiums.