Top 6 Ways to Get the Most Affordable Business Insurance
- Work with an independent agent who can compare rates from several sources for you.
- Increase your deductibles; you take on a bit more financial risk in the event of a claim, but pay lower premiums.
- Don’t buy more than you need.
- Request discounts based on safety measures you have implemented.
- Bundle your insurance plans together under one insurance company whenever possible.
- Pay annually instead of monthly or quarterly.
Cut Back on Costs, Not Commercial Insurance Coverage
The best ways to keep your business insurance costs low are to know exactly what you need, and get the amount that is appropriate for your company. For example, if you never drive a vehicle in the course of doing business, then you most likely do not need commercial vehicle insurance. However, if you do need commercial auto, find every possible savings opportunity within that plan. Be sure to hire experienced drivers with excellent driving records, for example. You can also require them to take a driver safety course. And finally, bundle your auto policies together for multi-policy discounts.
There are definitely ways to find affordable business insurance plans, and one of the most effective ways to get cheaper insurance and trim the fat from your expenses is to cut out excess coverage that you do not actually need. Just make sure you don’t reduce costs by eliminating business policies or important coverage you do need.
Here are a few ideas for ways to save on your business insurance costs:
- Affordable Commercial Property Insurance: If your commercial property insurance provides more coverage than the value of the property, you can cut back. For example, if you are covering a $200,000 building with $500,000 in coverage, you’re paying too much. You can also typically bundle your general liability insurance into a business owners policy, or BOP, to save costs.
- Affordable Business Liability Insurance: Your insurance costs will depend on the size of your business and the risks you face. If you are a sole proprietor or have a small retail store, a $5 million policy may be more than you will ever need. Ask your agent whether a $1 or $2 million poliyc would be adequate based on the nature of your business. As with your commercial property coverage, your general liability insurance can typically be bundled into a business owner policy.
- Affordable Commercial Auto Insurance: If you or your employees drive in the course of doing business, you don’t want to get cheap auto insurance that compromises the quality of your coverage. However, you can often save money by bundling your business vehicle insurance with your other plans, such as your liability coverage or business owner policy. Another way to cut costs on your commercial auto insurance is to raise your deductible. Consider requiring your drivers to take a safety training course, which may result both in fewer claims and lower cost insurance.
- Loss of Income Insurance: This coverage will help replace your business income and pay your regular costs, such as payroll and rent or mortgage, if for any reason you are temporarily unable to conduct business. You don’t want to scrimp too much on this coverage or you could end up paying your business mortgage after a fire or other devastating event, without the business income to pay for it. One of the best ways to save costs on this coverage is to bundle it into a business owner policy.
Digging Deeper to Find More Business Insurance Discounts
As a business owner, you have a range of opportunities to reduce costs through proactive efforts on your part. One of the most critical steps you can take is to work closely with an independent agent who will devote the time to fully understand your business needs and risks. The process is similar to working with an accountant who knows where to find deductions you wouldn’t necessarily think of on your own.
Granite Risk Advisors will fully get to know your business and perhaps visit your facility, if appropriate, to learn how you operate. Your agent may identify several additional ways to cut corners on your insurance bill while still getting the highest quality coverage and maintaining an optimal risk management program.
For example, you may be able to get discounts by improving your company’s overall safety and security and remaining claims-free. Some of the ways you can do so include the following:
- Develop a worker safety training program
- Install security cameras and a building security system
- Install a fire sprinkler system and make sure you have accessible, functioning fire extinguishers
- Strengthen your company firewall against cyber-crime
- Reduce risk in your daily operations through safety inspections
- Improve fraud awareness; hire a forensic accountant to train your senior staff on what to watch for
- Reduce your business liability through safe materials handling, a driver safety program and other safety measures that reduce the likelihood of claims
Some of the measures you take to reduce your commercial insurance costs may require an investment in the short term that will yield discounts and savings in the long run. Your agent can help you to assess which safety and security measures make the most sense for your organization and will yield the best outcomes.
To get the most affordable business insurance for your company, call Granite Risk Advisors today. Because our agents work with multiple insurance companies, you will have several options and can choose the best coverage for your company at the rate that fits your budget. Your agent will also be able to combine all of your business coverage in one package, so you have one contact for all of your commercial insurance needs.