Lowering the cost of your business insurance premium should be one of your priorities every year when the premiums are due. It may seem like time that could be better spent in other places. But when you consider how much you could be saving, it should become apparent why you need to schedule insurance evaluations in your busy schedule.
There are many ways to lower your business insurance premium, but today you are here to discover the 5 best ways to do it. These ways apply to you no matter how big your business is. So, let’s jump in and discuss the 5 ways to save you money.
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1. Evaluate Your Needs
If you are unsure what types of insurance you need, it is time to sit down and do some research. There are many different types of business insurance available for you to obtain. You can save substantial money on your premiums if you remove the ones you do not need. If you purchased a business insurance package, you received a variety of insurance policies that most businesses in the same industry use. These plans will include some things you do not need and leave out some that you want.
It is crucial to review the offer before accepting it and make any necessary changes. If you are not sure what you need, obtain the help of a business coach or a lawyer that can help you through the process, step by step. There is no need to pay an outrageous amount for a policy you do not need, but make sure you are paying for the business insurance you require.
2. Higher Deductible
The most straightforward way to decrease the cost of your insurance premiums is to increase the amount of the deductible that you have set. The higher you put this amount, the lower your premiums will be. This can decrease your insurance costs substantially, as you can see by going in and playing around with the numbers.
Remember, though, that the higher your deductible is, the more you will have to pay out of your pocket. If you do not have many claims throughout the year, this is a great way to save your business money. But on the other hand, if you have a lot of claims, you will not want to foot a huge bill before the insurance company picks up the costs.
3. Compare Policies
Business insurance rates can fluctuate up and down, depending upon the insurance carrier and what level of coverage you are opting for. It can take a substantial amount of time for you to call around and get some quotes, which is why you need to go to an online comparison platform and let them do the work for you.
All you will have to do is go through the offers that the platform throws at you. Check to see which are the most affordable and compare that to the type and amount of coverage they offer. Always remember that the cheapest insurance plan may not always be the best. Compare them all to each other and pick the one that works the best for you.
4. Premium Payments
It will seem like an excellent idea to pay the monthly premiums because it is something you can budget for your business. If you dig a little bit deeper into this idea, you will find that you will pay more by the end of the year if you make monthly payments.
The best way is to pay the entire amount in one big payment. This will require you to make a substantial payment upfront, but it is only once a year, leaving the other months with extra income to help you grow your business. You have two options if paying the premium by the year is too much. You need to either save up some profits throughout the year or find some ways to increase the profits brought in by your business.
5. Bundle Insurance Policies
Once you have researched and know what types of insurance coverage you need, you want to bundle them all into one large file. This will save you money on each policy you have, even though you would swear that you are paying more because you see one large premium amount due instead of a bunch of smaller ones.
Suppose your business insurance carrier works with private individuals. In that case, you may even want to add them all under a more significant umbrella policy. This will connect all your personal policies with your business contracts, giving you a reduction on their premiums.
Final Thoughts
Business insurance can be a thorn in your side when you are just getting started, but it is worth the pain it gives your pocketbook. You do not want to be without coverage when needed, so it is better to have it. You do not need to invest in a policy covering everything possible, though, because some of it will not apply to you and your business. Never pay for something you do not use, and never go without it.