Business insurance helps the companies to protect their financial assets, intellectual and physical properties from a covered loss as a result of risks arising from the lawsuits, property damage, vandalism, injury of employee or illness, theft, and loss of income. There are many coverage options available to businesses. Depending on the size, location, nature of operations and size of employees a company can decide on the type of insurance that it should go for. As the company will grow their insurance needs will change, but the business needs to know the ways by what it can save on business insurance.
10 ways to save money on business insurance are as follows:
1. Shop coverage with local independent agents
Commercial insurance with this company at Oklahoma as the commercial providers will evaluate risk as per the algorithms that can put up different quotes from the same information. It simply implies that for the same coverage you could pay very less amount as compared to what you were paying to the companies abroad. It is recommended to shop for your business insurance on an annual basis; this would help you to find better and cheaper options for the insurance. However, some companies do pay loyalty bonus and free discounts thus before moving to other, check this aspect too.
2. Bundle coverage with a Business Owner’s Policy (BOP)
A business owner’s policy clubs several types of common protection plans together in a single plan like property, liability, business interruption and such. Thus this can help you to get business insurance at a much lower price than if opting for different coverage policies. Read and understand the coverage policy very carefully before you sign the coverage.
3. Consider some different bundle
Insurance companies quite often provide price breaks as you go for multiple lines of business insurance coverage. Thus, you can check out the different coverage plans like commercial auto, workers compensation coverage, etc. from the same company.
4. Analyze your risk and the protection
Take an in-depth analysis of your property and risk along with the associated business insurance policy that you have. This has to be done to assure that you have not covered what you do not require. If you have a vehicle for the business and you are not using it, then the need for commercial insurance on that vehicle is useless, and the there is no need for a policy. Similarly, if there are no employees the need for employment practices liability coverage, thus you need to be cautious while going for the policies, for the risks that you are not facing, do not call for insurance.
5. Increase your deductible
Some policyholders have no clue about their deductible and premiums. Thus one should be aware of the fact, that lower the deductible means the higher will be the premium. So, if you lower your premiums, you can reduce your deductibles. Simply keep in mind that you need to pay the deductible before you make any claim. Hence keep the amount as such so that you can pay it even in case of a hurry. Also, the benefit of having higher deductible will be that you will not be encouraged to file for smaller claims. Ascertain the amount that your company or you can bear and depending on it, make the decision. For every year, that you do not have a claim, you actually save upon the deductible.
6. Does the company offer for a claim-free discount?
Companies like the policyholders who do not actually file for the claim. Therefore, if your business has been claim-free for quite some years, then you are definitely eligible for a discount. It means avoid filling smaller claims. Also before the expiry of your current insurance ask your company to provide you with the information about the company’s loss, experience and use this information while getting the quotes from the second company. It is also a norm for the companies to provide information on loss runs to their insured.
7. Inquire regarding loss prevention programs
Ask the insurance companies to give an inspection of your operation and recommend for you ways that can help you to reduce the risk in your business. It could be initiated by including workplace security program, starting theft prevention plan, having the inventory at more than one place, installing the disaster preparations; these are few tips that could actually help to reduce the losses at business. These, in turn, will reduce the risk of loss; therefore you may get a price break, and in turn, this could also help you in determining if the amount of deductible needs to be changed or not.
8. Change the mode of payment
This is a subjective matter and can differ from company to company, but if you pay your premium of business insurance in full upfront, it could help you to get substantial annual savings. Certain automobile insurance companies offer as much as 15% discount if they receive the payment in lump sum.
9. Look for stability in the providers
The above-mentioned points will help you to save money for your business insurance only if you are with the right insurance company. When looking for insurance providers do not always go with the companies that provide the cheapest quote as this could go wrong when you file for the claim. Go with the business insurance company who has been in the business for more than 5 years. Always read the reviews that the company has from its present or previous policyholders. Try to know the company’s financial stability with the help of a third party.
10. Do not consider the business insurance as an afterthought
Treat your insurance as a planned expense or operational cost and prepare for it in the budget rather than treating it as an afterthought. This could help you to reduce the amount spend on the full coverage. It requires proper planning to complete the whole process, and it will be worth the entire process.
These business insurance tips will surely help you in saving the money.