Business insurance can be an expensive yet worthwhile investment because of the insurance premiums. When you invest in business insurance, you are essentially securing your finances against the potential loss that can occur should the event you are insuring against occur. But that does not mean you should not explore and take advantage of opportunities to reduce the amount of money you pay for insurance.
Ways To Reduce Your Insurance Premiums
Here, we look at some of the top ways you can reduce your insurance premiums.
Bundle business insurance
There is really no one size fits all when it comes to business insurance premiums. Which is why there are different plans and packages to suit your needs and budget.
Apart from employee compensation insurance that is required by law for businesses with workers. You are free to pick and choose the insurance covers you want for your business. Unfortunately, this method can make you end up spending more.
Instead of choosing and picking, you can bundle business insurance to make your premiums cheaper. For example, you can choose the Business Owners Policy (BOP) which combines commercial property insurance and general liability, or you can simply ask your provider if they have a broader bundle that contains the essential covers your business needs.
Shop Around
Business insurance providers are a competitive bunch and companies try to offer a better rate than the other. It is, therefore, a good idea to shop around before committing to an insurance premium provider.
Even if you are currently with an insurance provider, you can spend some time looking at the offerings of other insurers to see if you can save a buck here and there as long as it will not affect the benefits you get using business insurance.
Talk to different insurance providers about your options. You may be lucky to get a company that will match your current deal. But with better services or one that will charge you less for the same benefits.
However, ensure that you buy business insurance from a reliable insurer e.g.: Talisman Casualty, so that you don’t have problems making a claim when you need to. You can visit the Nevada Insurance website for information on who is Talisman casualty insurance or find information on any other Nevada registered insurance company, as a way to ensure authenticity and reliability.
A word of caution though. Don’t simply jump at an insurance provider because you are looking for a cheaper deal. Do proper research to verify that the company will actually keep to their obligations, then only go for the provider that meets your requirements.
Use one Insurance Company
Many people don’t know this, but making use of one insurance provider for all your business insurance needs can help you save on premiums. A lot of insurance companies offer discounts and loyalty bonuses for customers who have been with them for a long time and those who carry more than one policy with them. Find out if your best motor trade policy provider offers something like this. If it does, moving your policies that are scattered all over to place to the one provider is a no-brainer.
Not only will you save money, but it will also be easier to manage all your covers as they are all in one place.
Increase deductible
An insurance deductible is simply the amount of money you are expected to pay your insurance company before they will activate the benefits of your insurance cover, up to the limit of your insurance. The bigger your business insurance deductible, the less you will pay for insurance.
Increasing the deductible on your business insurance policy will translate into you paying less in premiums. However, an increase in excess means that in the event any incident you are insuring against happens, your business will carry more of the financial responsibility.
To make this system work, you will have to weigh the pros and cons of an increase in deductible compared to the amount of money your business will be able to immediately bring up in should something go wrong.
Negotiate
Believe it or not, Insurance companies have been known to drop their prices. Just so to win a customer’s business rather than allow them to go to the competition.
In fact, you may be surprised that you are able to get a better deal from your current business insurance provider when you make the effort to negotiate. Ask them to match the quote you received elsewhere or even to give you a better deal.
If you plan on moving to a new provider and the quote you received isn’t as low as your current provider. Ask them to match it, they generally comply to prevent you from going elsewhere.
Operate out of a good neighborhood
Some insurance providers check the neighborhood where you run your business to determine how risky it is.
Low traffic areas tend to carry a much lesser premium because the risk of accidents and theft are lesser. The same thing also applies if your business premises have some form of safety and security equipment and protocol in place.
Wrapping up
There is no hard and fast rule when it comes to business insurance. The fact that employers are mandated to have employee compensation insurance. You can decide to only choose commercial property insurance or general liability insurance.
But if you would rather have better protection for your business. The tips contained in this article will hopefully help you spend less on business insurance.
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