Insurance is not cheap. In fact, it’s between $500 to $15,000 for annual small business liability insurance.
You want to protect your business but don’t want to take out another loan to do so?
What are your choices to save hundreds or thousands on your insurance expenses?
Consider these five tips.
- Raise your deductible: All insurances are the same in this way. A lower deductible means paying more for your liability insurance. If you raise your deductible, you are taking a risk, but a calculated risk because you’ll be lowering your premiums.
- Cut unnecessary coverage: As a small business, it’s in your best interest to carry at least minimal liability coverage. It protects you from any injuries or accidents that may occur. This insurance also protects you from claims of negligence. Other than the necessary liability coverage, there are some policies you can live without, such as: property insurance, professional liability insurance or product liability insurance. Be sure to comb through all the details of these policies or have an attorney who specializes in business law do it for you. Unnecessary coverage can take an unnecessary amount of money out of your businesses’ pocket if you’re not careful.
- Look for package deals: If you do need multiple forms of coverage, a Business Owner Policy (BOP) might be right for you. BOP’s package property and liability insurance into one policy and are often cheaper than buying these policies separately.
- Shop for deals: Though licensed insurance brokers can help you find the right policies for your business, they also receive commission from sales, so they may not be trying to get you the best deal, just a deal. It’s recommended to get bids from at least three different brokers, independent insurance agents and direct insurance agents to receive the best and most competitive price for your situation.
- Reduce your risk: A high risk business equals a high dollar insurance policy. Talk to your insurance company to find out how to reduce your risk and prevent losses. Examples could include theft-prevention techniques, disaster preparation, human resources training or additional workplace safety guidelines.
Less risk equals fewer filed claims which could entice your insurer to reduce your rates.