One of the key components that managers often overlook when saving money is business insurance. For a serious business, it is vital to lower the costs as much as possible and increase revenue. As a result, most businesses tend to save money wherever they can. Insurance companies offer policies at different price points. Sometimes you may be spoiled for choice on a policy that is worth your money and that which is a waste of your limited budget. Therefore, it is important to understand the basic metrics of business insurance and determine how you can save money from it. Here are a few things to consider when saving on business insurance.
Shop around even if you have an existing policy
Be aggressive when it comes to shopping around because it will determine how much you save on business insurance. Shop with the local independent agents. The agents use different algorithms to produce varying quotes generated from the same information. From the algorithms, you can find lower rates than what you are currently paying for. It is a good idea to review your business insurance coverage after every one to three years. However, you need to determine whether your current insurance provider offers discounts and loyalty bonuses before you move.
Combine your coverage with BOP
Business Owner’s Policy (BOP) bundles several coverage together to form a single insurance plan. This is often graded at a lower price than when the business owner shops for the coverage separately. For instance, you can combine property, business interruption and liability insurances into one entity. However, you must be careful because some insurance providers to include auto and health insurance in their BOPs. Ask about the coverage they give under this plan. In most cases, you will have to buy the policies differently.
Minimize your risks
A responsible business owner does not need some insurance policies. A business can minimize the number of insured risks by carrying out an extensive training on safety and risk management. It will also reduce the possibility that you will make a claim. This will ensure that the premiums you have do not increase to uncontrollable rates.
Do not insure unnecessary risks
You must evaluate your protection and risks to determine which ones are worth insuring. Do a comprehensive review of your existing policy and get rid of any coverage you don’t need. If you don’t use a truck or any other vehicle for the business, don’t go for commercial auto insurance. If you don’t have workers, don’t go for worker or liability insurance. In short, don’t insure yourself against a risk you don’t face. In case you are unable to decide on which risk is worth insuring and which one to ignore, consult a professional insurance agent to help you get a cheap policy.
Increase the number of deductibles
A deductible is the amount of money you pay on your own when an insured risk occurs. A deductible has a direct effect on the amount of premium you pay for the coverage. The higher the deductible, the lower the premium. If you have fewer deductibles, the insurance company will charge higher premiums because they will have to part with a lot of money if the insured risk occurs. This means that increasing your deductibles is a good way to lower your insurance premiums. However, you should be careful when increasing the deductibles because you will have to pay for them if the risk occurs. A higher deductible will also discourage you from filing less significant claims.
Avoid filing smaller claims
Every insurance company loves a client who does not file claims. Some companies provide discounts and gifts to clients who have not filed a claim for a given period, usually in years. Therefore, try as much as possible to avoid filing small claims. Ask the company to provide you with a detailed report on your claims. Ask them if they provide any discounts to people who don’t file claims often. If they don’t, move to another company that can provide its client with loss runs. In some states, it is a must for insurance companies to provide their clients with discounts on loss runs.
Change your payment method. You can reap a lot of saving benefits from paying your premiums upfront. Your insurance is already charging a fee for a payment plan privilege. You can save money on business insurance by reducing the final costs of a monthly payment plan. Paying upfront allows you to save for the next fiscal year. However, you need to be careful when paying upfront, especially if the business has cash flow problems. Talk with your accountant to determine whether it is financially safe to pay premiums upfront.
Look for the right provider
Get the right insurance provider or agent if you want to save money. A good insurance agent will help you to shop around and get the best quotes available. He or she will also help you evaluate the quotes and choose the right one. Don’t go for the cheapest quote because you could be in for a surprise when claiming. Be sure to contact a professional agent who is licensed by a recognized real estate institution.
Don’t be afraid to ask
Never be afraid to ask your insurance company about any discount on offer. Most companies give premium discounts annually. However, they often keep their clients on the dark to minimize the losses associated with discounts. Discounts can help you find a reduction in the cost of insurance, especially if you have a wide variety of coverage to finance. There are so many discounts available out there. The secret is to ask your provider. You can search online for listings. You can also look at publications that relate to the insurance industry to find out the companies with the best discounts on the market.
Buy many policies at once
Insurance companies often give discounts to those who buy multiple lines of coverage. If your insurance company has such provisions, you could save by purchasing liability and property coverage and combine them with auto and workers insurance.
Saving on business insurance is never an uphill task if you have the basics at your fingertips. These ten tips will help you save on business insurance significantly. If you have doubts, you can talk with a professional business insurance consultant for more insights.
See also: Compare Business Insurance Rates