Business insurance is an important tool for any company. It helps protect your business from financial losses due to unforeseen circumstances such as lawsuits, accidents, and property damage. While insurance can provide invaluable protection, the cost can be a significant burden for a business. This is why knowing the different ways to save money on business insurance is vital.
The primary driver of your business is profit. Of course, reducing expenses is one way to increase profits. A smart small business owner can significantly reduce their commercial insurance costs.
Saving money without significantly lowering your coverage is the key. Saving money is great, but you can't put your company in jeopardy to make a few dollars. The following recommendations can help you reduce the price of your business insurance.
Merge With a Business Owner's Policy
A business owners policy (BOP) combines several common insurance policies (property, business interruption, and specific liability) into one agreement, typically at a lower price than you could obtain by shopping for the coverages separately.
Be sure to carefully read the policy before you sign. Most BOPs do not contain auto or professional liability insurance, let alone workers' compensation coverage. You might need different policies for this.
Consider a Different Type of Package
Several commercial insurers also provide home and auto contractors insurance. Why does that matter? Carriers frequently provide discounts when you buy multiple lines of coverage. If so, you might save money without sacrificing your coverage.
Not all insurance providers will offer discounts for combining personal and business covers. Look around for a carrier that offers this.
Evaluate the Level of Protection and Risks
To ensure you don't have any unnecessary coverage, carefully review your policy. For instance, if you don't use a vehicle for work, you probably don't need commercial auto insurance. You don't need employment practices liability insurance if you don't have employees. Be careful not to shield yourself from threats that you won't encounter.
A great place to find out what you need and don't need is from your insurance agent.
Modify Your Payment Methods
Depending on the provider, you might save a lot of money by paying your premium in full in advance. For instance, companies that provide commercial auto insurance can lower annual costs by up to 15% if paid in one lump sum. An electronic funds transfer can also be authorized.
Be the First to Act
Being proactive is an excellent approach to lowering the price of business insurance. This indicates that you should go above and beyond to protect every part of your business. Accidents may be prevented, and your insurance costs may be lowered by eliminating the hazards.
Don't Focus Solely on the Cost
Contrary to popular assumption, the most important aspect of insurance coverage is not typically its cost. Rather, ensure that you have all the coverage you need. If not, you might be saving money monthly for your premium, yet if and when you experience an accident, you might spend significantly more.
Conclusion
Business insurance is an important investment for any business, large or small. It is important to understand the different coverage types. Additionally, there are some proactive steps that businesses can take to help reduce their insurance costs. These include raising deductibles, taking advantage of discounts for safety features, and consolidating policies with one provider.
Following these tips and consulting with insurance companies in Marietta, GA, can help businesses save money on their business insurance and ensure they are properly protected.
J.F. Shaw Insurance Agency is an independent insurance agency in Marietta, Georgia, offering auto dealers, car, home, church, restaurant, and contractor insurance. Contact us if you need business insurance!