The last thing you want to focus on when starting or running your business is what could go wrong. While you aren’t necessarily going to face struggles right away, if you aren’t covered with a good insurance policy, you’ll likely experience some issues down the road. Since running a business is risky, you should plan on being prepared to handle anything that comes up with the proper business insurance policy. But how do you avoid spending too much? Here are some tips that could save you some money on your insurance plan.
Know What You Need
Not every business needs the same amount of coverage. It all depends on what your business does and the risks involved. At the minimum, most businesses are required by law to have policies for workers’ compensation, unemployment, and disability insurance. But that’s just the minimum. When looking at how much coverage you need, you can start by looking at general liability insurance which will cover your business for any third-party damages, legal defense costs, and reputation damage from libel, slander, or copyright infringement. In addition, also consider a Business Owner’s Policy (BOP) to cover your business’s property and typically cover more for less money than a general liability policy. Other coverages will depend on the nature of your business, which your insurance agent can discuss with you your options in more detail related to your situation.
Increase Your Deductible
For most insurance policies, not just business insurance, you can lower your premium by increasing your deductible. Paying a higher deductible means less money the insurance company will have to pay after you make a claim on your policy. Because of this, insurance companies are willing to offer coverage at a lower price. Your agent will be able to discuss with you whether or not this would be a favorable decision for your business and the pros and cons of each choice.
Bundle Your Policies
Bundling your policies means that instead of buying separate policies for every type of coverage you need, you can purchase a package that will offer the same coverage for a lower price. Think of it like going to a restaurant. If you order an entree, side, and drink separately, you’ll end up paying a bit more than if you had ordered the combo that includes those items at a lesser cost. Bundled policies are the “restaurant combos” of insurance.
The higher the risk of injury at your business, the higher your insurance premiums will be. The safer your work environment is, the better deal you’ll get with your insurance. To get a better price, follow all safety recommendations from your insurance company such as enforcing safety precautions to avoid having your premiums raised to cover the extra risk.
Review and Update Your Coverage Every Year
As your business changes, so will your coverage needs, which means you should review your policies each year around the time of renewal to see if there are better options for either coverage or price. Also, by reviewing your policy with your agent, they will be able to make sure you aren’t paying for any policies that you may have needed for the previous year but not the upcoming year.
Consult with Your Independent Agent
Remember when you are reviewing your policies or looking at what kind of coverage to get for your business, consult with your insurance agent to help you shop for the best deals. They know insurance policies inside and out and will be able to guide you through making the best decisions for your business. If you have any questions or think you could be spending less on insurance for your business, give us a call today.