Tips To Save Money On Insurance For Your Business

Does business insurance feel complicated and costly? It doesn’t have to.

Arm yourself with knowledge so you can be sure you’re getting the coverages your business needs while saving money wherever possible.

Know What You Need

Businesses come in all shapes and sizes, and taking a close look at yours will help you determine which coverages are essential and which are not. Here are some factors that can impact your insurance costs.

Type of Business

Your business is not the same as the one next door, and your insurance shouldn’t be either.

If you run a construction business your insurance needs are going to be very different than someone running a ski and bike shop.

Many insurance carriers have business packages designed specifically with your business in mind.

For example, ski and bike shop insurance is built just for your outdoor adventure business - not for the coffee shop down the street.

Rather than piece together a bunch of insurance policies, find out if there’s a specific policy that will cover all of your needs at a lower cost.

Do your research to make sure you only buy policies that your business needs while assuring that you’re not missing any essential coverages.

Size of Your Business

The insurance needs for a one-man-operation are going to be vastly different than those of a business employing 200 people.

For smaller businesses, a BOP (business owner’s policy) could offer the perfect amount of insurance protection at a very affordable price.

Or you may work out of your home as a sole proprietor and only need a general liability policy to protect yourself against third-party accidents and injuries.

Larger enterprises, however, will have much different insurance needs. If you have 2,000 employees on the payroll, you may qualify for bigger cost-savings on things like employee health and retirement benefits.

There’s always a way to save on your commercial insurance needs, whether you’re a one-person operation or have thousands of employees working hard for you. Here are a few ways you can save on insurance for your business:
 

General Liability Insurance CTA

Bundle Coverages

Often, carrying multiple policies with the same insurer can result in bundle savings.

Business Owner’s Policy

A business owner’s policy (BOP) is a great place to start. Bundling both general liability and commercial property insurance – essential, cornerstone coverages for all businesses – a BOP assures that your business is protected from losses that are common to many businesses.

General liability coverage protects businesses from paying out of pocket for lawsuits brought against them for third-party (non-employee) injuries and damages.

Commercial property insurance protects business property – rented or owned – along with business assets inside from losses incurred due to damage from theft, fire, and vandalism.

Saving With Multiple Policies

Most businesses need more than one policy to properly protect themselves against the risks associated with their industry. Many insurers offer discounts if you choose to bundle your policies together.

There may be different coverages that are essential, based on your specific business needs which can be added as an additional, optional coverage.

Some examples include:

Getting all of your insurance needs covered through one carrier can help you save.
 

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Work Closely With Your Insurer

Big changes in your business can lead to changes in your insurance needs.

With years of experience, a knowledgeable insurance professional can provide you with invaluable advice to help shield your business from losses due to unexpected disasters.

It is up to you to keep your insurer abreast of all major changes that take place within your business, such as:

  • hiring or firing employees
  • relocating
  • purchasing new equipment
  • changes in goods and services offered
  • significantly increasing or decreasing revenue levels

Staying in close contact with your insurer can help assure that you don’t end up missing out on essential coverages or paying for insurance that you don’t need.

Don’t Let Coverage Lapse

Why would your business insurance lapse? Some common reasons are:

  • late payments
  • intentional cancellation
  • attempt to lower costs during slow season

Whatever the reason, a lapse in insurance coverage can lead to more issues than you might expect. Not only could you end up having to foot the bill for any accidents that occur while your business is uninsured, but you will likely end up paying higher premiums when you choose to reinsure.

And that might not be the worst of it. Some insurers see a history of lapsing coverage as too high a risk to insure, making it difficult to find coverage, which can end up costing your business a fortune when an accident occurs.

Be sure to make payments on time and keep your policies current in order to avoid higher premiums down the road.

Avoid Claims

The more claims you make on a policy, the higher your premiums can get.

In order to avoid this increase in premiums, make safety in the workplace a priority by making efforts to:

  • prevent falls
  • reduce worker fatigue
  • prepare for shooters
  • focus on ergonomics
  • provide consistent safety training
  • utilize risk management
  • personalize your safety plan

Keep your business safety record clean and you will likely see savings on insurance premiums.

By knowing what your business needs, keeping in close contact with your insurer, bundling policies while keeping them current, and maintaining a safe workplace you can save money on insurance for your business.

 

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