If you are own a business, you need insurance. It doesn’t matter if you have been running your business for 20-years or if you are just starting out, having the right insurance coverage will help to protect you from potential losses. Granted, this is not a pleasant thought and insurance coverage can be expensive but here are three ways to save money on insurance for your business.
The Case for Insurance
Depending on your business and what state your business operates, you might be required to get certain types of insurance coverage. This could include malpractice insurance, auto insurance, and even workman’s compensation insurance.
While many entrepreneurs might begrudge the need to spend their hard-earned money on something they might next need, the reality is that insurance helps to buy piece of mind. As such, the coverage can reduce stress, which is an important self-care strategy for any business owner.
However, it is important to remember that no two insurance companies are the same. In fact, some will offer specialized packages for business owners, while other providers are better suited to work with mid- to large-sized businesses.
As such, business owners should shop around before buying any insurance policies and a good place to start is an insurance broker. Sure, these are the days of online insurers and in many cases, one can get rate quotes online.
However, brokers such as Ian Norris from Sabal Insurance are licensed to offer a full suite of insurance products which cater to the needs of businesses. This includes being able to package coverage or negotiate for special terms, which many business owners would not be able to get on their own.
With that in mind, here are three ways to save money on your business insurance.
- Know What Coverage You Want
This again is another reason to consult an insurance professional before buying coverage as they will help to walk you through the options and pick the right insurance coverage for the needs of your business. In doing so, you will identify which policies you need as well as the coverage levels, deductibles, and premium rates.
Knowing the coverage, you need for business is important, not lonely will it help to better control your insurance-related expenses it will make sure you are covered when things go wrong. However, you will need to do your homework.
As mentioned some policies will be mandated by the government but other policies, while not required, are a good idea. These include general liability insurance and a business owner’s policy, also known as a BOP.
The latter will offer additional coverage than most general liability policies including options for non-owned vehicle coverage. This is important if employees use their own vehicles for business-related purposes.
In addition, one new policy type that is becoming increasingly important is cyber liability insurance. As the name implies, this policy will protect your business’ online presence from the increased chance of a breach or some other adverse scenario. This is important as more and more small businesses have become targets for hackers.
- Ask for Discounts
If you don’t ask, then you will never receive. Just like everything else in life, this works when it comes to insurance. While every insurance company is different, it makes sense to ask if your provider of choice offers discounted rates for multiple policies or package deals. Not only will this save you money, but there might be options for your employees to save on their medical insurance as well.
- Regularly Review Your Policies
One of the worst things you can do is assume that once you have secured insurance coverage that you’ll never need to review your policies again. This is couldn’t be further from the truth as not only insurers likely to adjust their rates, sometimes lower, but the insurance needs of your business might change.
As such, you want to make it a point to review your insurance coverage at least once a year. While this can be done internally, it’s a good idea to sit with an insurance consultant to ensure your policies meet the current needs of your business.
Beyond this, you might find yourself paying for policies that you no longer need. As such, a regular review will help you to cancel this coverage. Another benefit to reviewing your policies is that can give you an opportunity to adjust your deductibles. While it might seem counterintuitive, increasing your deductible will reduce your premium payment and this will help you save money on insurance for your business.