Keeping Your Business Insurance Affordable
Like any other part of running your business, you want to keep the business insurance coverage within the company’s budget. It’s important to have all the coverage you need, but it’s also important for that coverage to be affordable and keep your company’s bottom line healthy. Fortunately, there are some ways to save on commercial insurance and still get a comprehensive policy that covers all the bases.
Know What You Need
Some companies sell package policies that may include coverage you simply don’t require. Because commercial insurance can differ greatly depending on the type of business you run, each commercial policy needs to be tailored to that company. Choosing a pre-packaged policy could have you paying for coverage you don’t need; worse than that, it could leave you without coverage you do need. A one-size-fits-all approach does not always work in business insurance.
There’s nothing wrong with a package policy as long as it meets your needs. Take the time to understand the various coverage options and to select that which you really need in order to be covered. Also be sure to know which coverage options do not apply to your particular type of business, so you don’t wind up paying for them. Look for an insurance agent, broker or company willing to work with you, go over all of the pertinent information about your business, and put together the right package for your company.
Shop Your Rate Around
It may seem obvious, but too many business owners are so caught up in the work of running their company that they don’t take the time to shop around for a better rate on business insurance. They stick with the same company year after year, or choose the first option simply because they need to get it done and move on to the next thing.
Investing a little extra time in shopping around and comparing rates on your business insurance can save you a lot of money. Fortunately, getting insurance quotes is faster and easier than ever today thanks to internet quoting systems.
Prepare for shopping around by making a list of the coverage you want included, and be sure that you are comparing similar packages when you get quotes. You don’t want to accept a lower premium only to find out it doesn’t include everything you need.
Look Into Group Rates
Joining a business association may well have some benefits when it comes to your business insurance. A number of business associations have access to better rates. Look into the local Chamber of Commerce or other large groups; the bigger ones get the better breaks on rates.
Of course, you have to be a member of the group, and in some cases fees could be involved. Be sure to weight the costs of membership against the savings you could see. It’s also a good idea to remember that having an association membership is usually a good thing for companies, so the increase in business due to the reputation of the association may be an added bonus as well.
Look for Risk Factors
A big part of your insurance cost is based on the risk that you represent to the company. Consider what steps you might take in order to make your company appear less risky to an insurance company. You can lower your property coverage by adding a state of the art security system, for example.
Certain liability risks may not be worth what they are providing to the company. If you have been keeping commercial auto insurance in order to make deliveries to customers, for example, consider whether it’s worth offering that service considering the cost of the coverage. When you have people out driving around, you increase your liability risk.
Also consider the location of your business. A company set in a safe neighbourhood where break-ins are uncommon will see lower insurance rates than one in a more risky area. Of course, there is a balance here as well. You’ll probably pay higher rent in a safer area – then again, your business might attract a different clientele as well.
Getting a better rate on your insurance can be done, but it does require a careful balancing of the other costs involved in your company. Be sure to consider any changes carefully prior to making a move; sometimes the insurance savings is lost in the cost of the change you make to lower the premium.
The best way to ensure you are getting the best rate possible is to shop around, and to take the time to review your policy carefully with an insurance professional on a regular basis. Keeping it up to date and keeping up on current rates that are available to you will make sure you’re on top of your insurance.