Like everything else that we must pay, reducing the cost of business insurance is something that we all want. We look for ways to cut any business expense possible. There are numerous ways to reduce your insurance premiums but be advised that some of them may come around full circle and cause you some grief.
- Cut Sections That Are Not Needed: When you get an insurance policy a lot of times it will be a standard one that they give to all business entities that match your needs. You need to take the time to go over the contract that you signed. It is better to check before you commit, but if it is already done it may be a lesson learned for the next time. Either way, when you find something in your policy that you do not need remove it from the coverage. For instance, if your policy has a section that covers products, but you are a service business, you should remove it to save some cash on your premiums.
- Raise Your Deductible: This is one of the quickest ways to decrease your premium costs. The higher that you set your deductible, the lower your yearly insurance premiums will be. This is one of those tricks that you need to watch out for, though. It may slip your mind, until you go to file a claim, that you will have to pay more money out of your profits if something should happen. Most of the time the insurance company will not accept or pay out on a claim until you have paid the deductible amount.
-
- Compare Numerous Insurance Carriers-When it is time to renew the contract, or when you are just starting out with one, you need to use an online comparison platform, like iSelect, to compare companies. Not all insurance policies are created equally, and not all of them have your company’s best interest in mind. Let the online comparison site do all the leg work for you, just leaving you with the task to compare. Remember that the cheapest offer is not always going to be the best. Compare the price, but also compare the policy itself. What it covers, what is does not cover, any exclusions or riders, and if the policy will meet the legal requirements.
- Yearly Premiums: It may be extremely convenient to pay a monthly fee to cover your business insurance expenses, but it will end up costing you more in the long run. It is better on your pocketbook if you pay by the year, for two reasons. One is the money that you will save, and the other is that it will lock the price in for the entire year. That is extremely beneficial when you consider inflation and the economical changes that are driving prices up.
- Discounts: There may be various different discounts that your company could qualify for. Being part of a specific industry could save you some money, as could any volunteer companies that you help out. Bundling insurance into one umbrella portfolio will decrease the costs of the premiums. All the premiums.
If you offer insurance to any employees, you may be able to get a discounted rate for all the people that accept the coverages, as well as knocking off some expenses for you because you brought the insurance carrier more business, which means more money for them.
Reducing the costs of your commercial insurance policy may seem like something that you would rather not waste time on. The facts are, though, that these types of policies are an absolute requirement. Some by law, some just to cover yourself against any problems or issues that could come up throughout the year. Bottom line is that you must have business insurance coverage, so you might as well take the time to save as much money as you can up front.