How To Save Money On Your Business Insurance Policies
Your company is in business to make money. However, you must pay certain mandatory expenses like insurance. Purchase this valuable asset and save money when you follow several tips.
Assess Your Risks
The type of business you own, its location and other factors determine your risk. Discuss these details with your insurance agent as you customize your insurance coverage. You'll save money when you pay only for the policies you truly need.
Bundle Your Business Insurance Policies
Your company probably needs several different insurance policies, including liability, property and auto. You’ll choose limits and pay separate premiums for each of these policies. However, you can save money when you bundle individual policies under a Business Owner’s Policy (BOP) or purchase the multiple policies you need from one insurance company.
Raise Your Deductible
If you file an insurance claim, you’ll owe an out-of-pocket deductible. Choose a high deductible, and you’ll lower your premium costs. Be sure, though, that you can afford the deductible you select.
Prevent Claims
Your insurance premiums can increase if you file numerous claims or maintain unsafe working conditions. Reduce claims and prioritize your risk management to solve this challenge. For instance, train employees to practice safety at all times, provide a clean work environment and reduce hazards throughout your property. Additionally, follow any safety recommendations your insurance company suggests, such as disaster preparation or human resource intervention as you reduce your insurance costs.
Pay Your Bill on Time
If you forget to pay your insurance premiums, your policies could lapse or be cancelled. Your insurance rates could then increase when your insurance policies are reinstated, or you may be denied commercial insurance coverage, which puts your company at serious financial risk.
Perform Regular Insurance Reviews
As your business services, risks and needs change, your insurance needs change, too. Regularly review your insurance policies with your insurance agent to make sure you have the right coverage for your company. Ideally, hold this review annually or whenever you sell or acquire assets, move to a different location or make other changes that could affect your insurance needs. At this review, you may be able to drop certain coverage, change your policy limits or adjust the deductible and save money while retaining your invaluable insurance coverage.
Shop Around
Take time to compare insurance costs from a variety of legitimate and financially stable companies. By shopping around, you may find that switching to a different company saves you money while keeping you protected. To receive accurate quotes, compare identical types of insurance, policy limits and deductibles.
Your business insurance policies protect your company. Use these tips to save money on this valuable coverage.