Whether or not a business needs insurance really isn’t open for debate. Without proper business insurance protection, a single accident can result in a major lawsuit that could spell bankruptcy. The challenge, then, becomes selecting the business insurance coverage you need at an affordable rate. Here are some tips how to control costs of insurance
Get Quotes to Compare Companies and Rates
You should never go with the first company you see, always shop around. You may end up back with your first company choice, but you will know it’s the best deal compared to other insurance providers because you analyzed the quotes and made the appropriate comparisons.
The best way to shop around is to get quotes from several different available companies. Sometimes you can get business insurance quotes all in one place online. Another way is to meet with several companies and ask for individual quotes. Individual quotes might give you a more accurate estimate based on your individual business needs
Compare coverage
Don’t stop at just comparing insurance premiums. Also compare different coverage options. See what’s available, and what you realistically need coverage for.
Seek advice from a qualified insurance professional
– You’re going to want somebody in your court to explain options and seek out the best coverage for your situation. A knowledgeable insurance agent or broker you can talk with, is invaluable. A good agent will be proactive, bringing up issues and savings opportunities you may not have thought of. He or she will help you cut through industry terminology, and “compare apples to apples.”
Increase your deductible
In many types of insurance, the risk of taking a higher deductible is offset by the lower premiums you’ll pay. If a certain risk is unlikely to occur, you may be willing to trade the slim chance of a big deductible for lower monthly costs. However, be sure to discuss this with your agent so you make sure you don’t get stuck with a deductible you can’t handle.
Lower your liability Risk
Among many things to look out for; wet floor surfaces, cracked or crumbling steps, cracked windows, parking lot with uneven, cracked or broken areas, lose handrails, exposed electrical outlets, and related exposures. Many of these somewhat minor details could result in a sizable lawsuit if they lead to a serious accident.
Consider a package policy
Instead of just a General Liability policy, you can save money by combining other risks such as property (i.e. inventory, or the building), an umbrella policy, business income, a commercial auto, etc., to your existing policy.
Get Group Business Insurance Coverage
Getting a group insurance rate is a great way to save money. If you’re part of an organization, such as a business or professional organization, you can often get a group rate among all the businesses apart of the organization. Check with your local chamber of commerce.
Most of these organizations will have an annual fee for membership, but with the lower rates and discounts you get from being a member, it will still be less expensive. Research your community and local organizations to find out if any other businesses are part of such organizations.
As Your Business Grows, Your Business Insurance Needs Change
Remember that once you have conducted the necessary research and selected a business 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 business 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.
Review your coverage annually
At least once a year, review your coverage for duplications or unnecessary coverage. For instance, you may have sold a business unit or discontinued a line of business, and no longer need certain coverage. There’s savings right there.
Keep cash flowing
Paying annual premiums all at once can take a chunk of cash from your business bank accounts. To keep your cash flow in good shape, it’s often worthwhile to break the costs down and pay monthly premiums instead, even if this incurs a small service fee.
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