How to Save Money When Buying Business Insurance

How to Save Money When Buying Business Insurance

When starting your own business, finances can be tight, but business insurance is not the place you will want to start skimping.  There are some ways to ensure you are getting the best deal on coverage for your company, just remember to never substitute quality insurance for a good deal.

Comparing prices from company to company can help ensure you get the best deal on comparable coverage. First, be sure to look up insurance providers that specialize in your line of business, as coverage needs can vary greatly. To get a ballpark estimate for commercial insurance, consider using a service that compares rates for you rather than having to call individual companies on your own.

If you’re really looking to save money, consider dropping your premium and opting for a higher deductible. This should be done with caution, as you will need to come up with the deductible if you ever find yourself filing a claim for your company. It may be smart to set minimum savings that covers your deductible, and leave this untouched until you really need it. When put in the right bank account, this balance can accrue interest, providing you with additional funds should anything happen to your business.

While insurance providers may offer individual rates for different types of coverage, as there are many, bundling or packaging policies can often provide savings. Ask about Business Owners Policies, also called BOPs, which generally include enough standard coverage and liability for small businesses. Be sure to compare the price outcome of both options, as this may not always be the case.

Also try to establish a good working relationship with your insurance agent, as you will need to work closely with them. Insurance professionals will not only be able to guide you toward the best policy for your business’ needs, but also offer advice for keeping your company safe from potential risks and threats.

It is also crucial to keep them informed on any major changes to your business, such as added employees, large purchases and expansions, as this can require you to modify coverage limits. While this could mean you have to pay more, not increasing your insurance policy could result in a claim being denied, while your agent will likely do their best to get you the best deal possible.

Should your business be affected by a natural disaster, speaking with someone who is familiar with your company’s practices and your personal approach to procedures can provide extra comfort when times get rough. Your agent can also help you develop a plan/strategy for dealing with work-related accidents and incidents, while having a disaster plan that fits into your policy’s outline is necessary.

Don’t forget to ask about any potential discounts that you may be offered through the company, but be aware that smaller providers may not offer the same promotions. Some providers may offer a deal if you are a member of another association or if you have made additional steps toward improving safety in the workplace.

If at anytime you feel you are overpaying for coverage, you shouldn’t hesitate to seek out a new provider. This can be done without challenge by using an online resource to compare rates as well as terms and conditions, while contacting companies directly that work with businesses in your industry can also be wise.