We all look for ways to save money on business insurance. Some of it, such as liability and workers compensation, are required by law in certain instances. Other policies are needed to protect you from lawsuits, product defects, damage, and lost revenue.
The options are many so before trying to lower your insurance premiums costs you need to sit down and figure out exactly what you need. It is nice to save money, but not if it is going to end up costing you more in the long run. With that in mind, let us go over a few things that you can do to lower your business insurance cost.
Remove Excess: If you have ever read through an entire insurance contract (which you should always do) you will have seen sections of it that you do not need. As an example, if you have a service type business there will not be any reason to carry any type of insurance that covers products, or lawsuits due to defective products. If there are any clauses or add-ons that include anything that you do not need, have them removed.
Package Deals: You will find that out of all the business insurance types available you will need more than one policy. To take advantage of this you need to find a package deal that includes everything that you need, at a discounted rate. Using the same example as above, you would want to get a bundle that covers your service industry, not one that covers manufacturing and selling products.
Compare: You should always compare business insurance policies. The absolute easiest way to do this is to use an online comparison platform, such as iSelect, and let them do all the legwork for you. The company will take some information from you, analyze your needs compared to the lenders in the program, and then offer you some plans. Remember that the lowest cost may not always be the best option, so compare all the aspects of the policy, along with the cost of the premium.
Deductible: One of the easiest, and most substantial, ways to lower your premium costs is to increase the amount of your deductible. The higher that you set this amount, the lower your premium costs will be. However, keep in mind that if something should happen and you need to file a claim, you will be responsible for the amount that you have set before the insurance carrier will consider paying off the claim. This could end up costing you a substantial amount in the end, so adjust this number based off your need and your budget.
Yearly Premiums: It may seem convenient to set up an automatic withdrawal for every month, but it is never the best option. You should always pay for the policy by the year, every year. Do not put it in as an automatic withdrawal because every time the year is up you need to do a comparison shop and see if you can get a better deal at a better price. The reasons that you should pay for the entire year is because it will save you money overall, and it will lock the current price in.
That is about all there is to it. There is no need to think that you are stuck paying the high premiums that your insurance carrier has offered you. You do not owe them your loyalty; they should be trying to earn it. So, before changing carriers, talk to your current one and tell them the prices of the others that you are considering. If they want to keep your business, they will come up with a plan to keep you. If not, move on to the insurance policy that you had your eye on before the conversation with your current carrier happened.