How To Save Money on Business Insurance Without Sacrificing Protection
Your grand opening is just two weeks away. You are pretty sure you have dotted all your I’s and crossed all your T’s so everything goes smoothly. You’ve worked hard for a long time to bring this dream to fruition, so of course you will want to make sure your business is protected.
Getting business insurance coverage is one of the most important steps you can take as a business owner, but it can be a challenge to find comprehensive protection that fits in with your company’s finances. Everyone wants to save money on business insurance, but no one wants to open their company up to unnecessary risks and liabilities. By learning the basics of business insurance, you can maximize your small business insurance savings without skimping on the coverage you need.
The Importance of Balancing Cost and Coverage
Insurance is meant to protect your finances by offering you financial and legal support if something happens. However, if your plan is too expensive, it could ultimately be a drain on your company and cost you more money at the end of the day. That’s why finding a company like Freeway Insurance that will help you customize your plan is so important.
Why Cheap Business Insurance Isn’t Always the Best Option
It may be tempting to immediately sign up for the cheapest plan you can find, but cheaper isn’t always better. Sometimes, the most affordable plan simply won’t have enough coverage to protect your company.
Every company has its own unique risks, and a minimum plan might not be designed to protect your organization from common incidents. Ultimately, this could cost you much more than simply paying a slightly higher premium for much better protection. Finding a balanced plan that’s both affordable and supportive is the key to optimizing your coverage.
5 Ways to Reduce Business Insurance Costs Without Cutting Coverage
Many people assume that paying less money means getting less protection from your insurer. However, there are many tips you can use to get cost-effective business insurance that still offers excellent coverage. By using these 5 simple strategies, you can reduce business insurance premiums without decreasing your policy limits or cutting out essential coverages.
1. Review and Adjust Your Coverage Regularly
Regardless of your budget, it can be helpful to regularly review your policy, including your premium, deductibles for different situations, add-ons, and base coverage. You want to make sure that your policy makes sense for your organization.
You don’t want to over-purchase insurance that you’ll never use, but you also don’t want to under-insure your company in the event of an emergency. By regularly reviewing and adjusting your plan with a trusted agent, you can make sure that you always have the optimal level of protection.
2. Consider Raising Your Deductible for Lower Premiums
Many companies immediately look for plans that have the lowest possible deductibles to decrease the amount they need to pay in the event of a claim. However, this strategy isn’t the only way to save money. It may be worth it to choose a plan with a higher deductible in exchange for lower monthly premiums.
Depending on how often you have to make a claim, it can be much more affordable to pay higher one-off deductibles instead of forking out more money every month for a lower deductible that you may not even use.
3. Bundle Your Business Insurance Policies for Savings
One of the best ways to reduce business insurance premiums is to bundle your commercial policies together. Combining general liability, professional liability, commercial auto, and other kinds of company plans can earn you a hefty discount from your insurer.
Instead of purchasing from different insurers looking for the cheapest individual plans, ask about bundle deals. This allows you to get more coverage for the lowest price, while also simplifying the process of managing individual policies.
4. Take Advantage of Business Insurance Discounts
Along with bundle discounts, many insurers offer extra discounts for businesses in different situations. For example, you can get discounts for introducing extra safety measures that help decrease your risk of making a claim. You can also get industry-specific discounts, loyalty program savings, and more.
5. Maintain a Strong Claims History To Avoid Premium Increases
Your claims history is one of the first things insurers look at when setting your premium. You can keep premiums as low as possible by decreasing your risk as a company to avoid at-fault claims. Focus on implementing safety measures and training your employees to lower the chance of making a claim that could impact your monthly costs.
How Choosing the Right Business Insurance Coverage Can Save You Money
Finding the right plan for your organization is the easiest way to save money on business insurance without putting your long-term finances at risk. It all starts with researching coverage options and matching them up with common risks to your company.
Tailoring Your Policy to Fit Your Business Needs
Think practically about what kinds of coverage make sense for your company. Consider common risks and claims for your industry, then focus on business insurance coverage that addresses those concerns. You can get more bang for your buck by creating a custom policy instead of simply choosing a one-size-fits-all option.
Avoiding Over-Insurance and Unnecessary Add-Ons
While you don’t want to under-insure your company, you also want to avoid paying for add-ons you won’t use. Carefully review all elements of your policy and make sure they make sense for the type of financial risks your company might encounter. It’s also important to adjust your policy limits so they give you enough breathing room in an emergency, but aren’t excessive and unrealistic.
Understanding the Different Types of Business Insurance and Their Costs
There are multiple types of business insurance coverage options, and it’s important to understand each one. Some companies may only want general liability protection, while others may need workers’ compensation plans, business disruption insurance, commercial auto policies, and more. Make sure you work with your insurer to find a combination of coverages that suits your organization.
The Benefits of Working with an Insurance Agent To Save on Business Insurance
Figuring out what kind of policy you need can be confusing, especially if you’re a new entrepreneur trying to figure out small business coverage for the first time. However, there are experts whose entire role is to help you find the right plan and save money on business insurance. By working with an insurance agent from a trustworthy company, you can enjoy even more savings with much less stress.
How an Agent Can Help You Find the Right Coverage at the Right Price
Agents are well-versed in commercial coverage offerings, including different carriers, types of policies, and discount options. They’ll compare all of your options and gather quotes on your behalf, so all you have to do is pick your favorite. They can also work within your budgetary constraints, so you won’t waste time sifting through plans you can’t afford.
Customizing Your Coverage to Your Business’s Specific Risks
When you work with an agent, it’s also easier to personalize your policies. A good agent will be familiar with what kinds of plans, coverages, and policy limits make sense for different kinds of organizations in various industries. They can use this knowledge to protect you from common types of commercial claims and risks for your company without over-insuring you with unnecessary add-ons.
Why Preventive Measures Can Lower Your Business Insurance Premiums
Along with shopping around and choosing the right insurer, the way you operate your business can also impact your premium. Taking a few simple steps can help decrease your risk level and ultimately reduce costs.
Implementing Safety Measures to Reduce Risk and Claims
Insurance is there to protect you in the event of an accident, but you should still do your best to prevent unexpected situations from occurring. Following workplace safety guidelines and implementing extra safeguards can decrease the chance of something happening that would require you to make a claim. If you can show insurers that you’re a low-risk organization, they can often provide you with a better deal.
Investing in Employee Training and Risk Management Programs
Along with ensuring your workplace is safe and secure, you should also make sure your employees understand how to avoid unnecessary risks. Carefully train your team to follow safety protocols and avoid opening up the company to extra liabilities. This can range from simple training techniques to more advanced risk management programs.
Get the Right Coverage at the Right Price with Freeway Insurance
If you want to save money on business insurance, you need to start with the right insurer. At Freeway, you can get expert advice from knowledgeable agents who understand the commercial insurance marketplace and how to get the most out of your policy. They’ll set you up with the perfect plan for your company, maximizing your discounts and minimizing your premiums. Get a free quote by heading to your city’s Freeway Insurance office, using our convenient online quote form, or calling 800-777-5620 to start saving today.
FAQs
Get even more business insurance savings tips to help you learn how to lower business insurance costs by reading these questions and answers:
What are the most common mistakes businesses make when purchasing insurance?
There are several common mistakes that entrepreneurs make when purchasing coverage for their company, including only focusing on price, not getting the right kinds of protection, and not understanding the fine print of their policies. It’s critical for company leaders to understand exactly what their plan covers, what it excludes, when it kicks in, and how much they can expect to pay in certain situations. Only trying to get the cheapest deductible or the lowest premium could lead to massive, unexpected out-of-pocket costs that could disrupt operations.
How do I know if I’m overpaying for business insurance?
You can determine if you’re paying too much for coverage by regularly shopping around and comparing different plans at various price points. You can also talk to an agent to learn what level of coverage is right for you.
Is it worth investing in umbrella insurance to save on business insurance?
In many cases, it can be worth it to get additional umbrella insurance to add an extra layer of protection for your company. However, umbrella insurance is designed to complement an existing policy, not replace it, so it’s important to make sure you still have adequate protection for various claims.
