If you own a small business, then you know that every dollar counts. This isn’t hyperbole, it is a statement of fact as every dollar saved can make the difference between growing your business and needing to shut your doors for good.
However, many business owners stop to think about the money they are spending on insurance. Sure, health insurance gets all the attention, but the reality is that the cost of insurance for many small businesses can be as much as 10 percent of their total revenue. This is a big number and before you purchase your next policy here are some tips on how small businesses can save money on insurance.
- Compare Carriers
Just because you already have an insurance carrier doesn’t mean you shouldn’t compare their rates, and service, with the competition. That’s right, the price shouldn’t be the only consideration – what good is insurance coverage if your claims are never paid?
However, you don’t want to blindly assume that just because you are paying more for insurance that your level of coverage is better. As such, you want to look at the level of service from a cheap auto insurance company. Only in this way can you get the most bang for your buck.
- Find an Agent Who Knows the Needs of Small Businesses
In this day and age is it easy to assume that you can just go online and find insurance for your business. After all, why go through an agent as they are just a middleman? Well, this assumption is only half true as the best agents, those who know small business can help you to tailor your coverage to the needs of your business.
As such, you want to find an agent who understands how your business works and can craft a policy portfolio that makes sense for your business. This means right-sizing coverage amounts, premiums, and deductibles for your company.
This is another reason why working with an agent makes sense for small business, as they will help you to bundle policies. By combining insurance coverage, you can take advantage of hidden discounts that you could never get if you purchased the policies separately. If you want to save money on insurance, then bundling one of the best ways to go.
- Embrace Technology
Did you know that installing sensors, cameras, and other devices can help you to save money on insurance? That’s right security upgrades such as cameras, smart locks, and hard-wired alarms can lead to lower property insurance premiums. In addition, cameras and telemetric devices can be used to get a break on what it costs to cover the vehicles used by your business. This can even include personal vehicles used by employees; however, there are some questions regarding privacy that would need to be considered before requiring employees to install these devices in their own vehicles.
- Increase Your Deductibles
This might seem counterintuitive but raising the deductibles on your insurance policies can help to reduce the overall cost of these policies. Their reason is simple – the higher your deductible, the lower your coverage amount and by extension the risk your insurer has assigned to your account.
To take it deeper, you get insurance to cover risks which while they probably won’t happen would represent a significant economic loss for your business. As such, right-sizing your deductible can help you to save money by making sure you are not paying for coverage you don’t need.
- Review Your Policies Regularly
Just because you have insurance coverage in place doesn’t mean that you never need to think about insurance again. In fact, you want to get into the habit of reviewing your policies once a year – another reason why an agent can help. In doing so you can adjust coverage levels based on the need of your business and this can help you to save money in the long run.
- Pay on Time
When it comes to running a small business, managing cash is always a balancing act. However, one area you don’t want to cut corners by paying a few days late is insurance. While you might think this will help you to better manage your cash flow, the reality is that insurers pay close attention to the payment habits of their customers.
As such, you should always pay your policies on time. If you are facing a cash crush, then a better option to review your policies and see if you can change your payment schedule. The easiest way to do this is a cancel a current policy and then set up a new one – though you will want to the help of an experienced professional to help you make these decisions.