How To Save Money On the Cost of Business Insurance

Saving money

Much like taxes, business insurance is something that’s not necessarily fun to pay for, but it’s a critical part of the cost of doing business. A lot of businesses struggle knowing what they need, the level of coverage they need, whether or not it’s a requirement, and how much they should be paying.

Business insurance is important for almost all organizations, but particularly as you grow and take on a greater level of risk.

A lot of small business owners make the mistake of thinking that if they form an LLC, they’re fully protected, but in reality, this protection is limited, and it’s not just LLCs that need to evaluate their business insurance needs.

Of course, you want to make sure you’re spending the least amount possible, so below are some tips to find competitive business insurance quotes.

Know What You Need

There is not one answer when it comes to what business insurance a company needs, which is why it’s important to know what’s right for you. This will help ensure you pay for what you really need and that you’re not wasting money on what you don’t.

If you’re an employer, you’ll at least need things like workers’ compensation and in some cases disability insurance, but you need to determine what’s needed beyond that.

General Liability

Once you’ve determined the bare minimum of insurance you need require it’s best to consider general liability insurance, particularly if your company has a lot of client interactions or you have several employees. Liability insurance provides coverage if you’re sued due to reasons such as libel for example.

Shop Providers

Once you have a very clear idea of what you need and even what you want regarding insurance for your business you can start shopping around with commercial insurance providers.

You can save a lot on your rates if you take the time to compare companies and don’t stop after the initial purchase. Most experts recommend annually looking around to make sure you’re getting the best deal, and there aren’t better offers out there.

Go With a Package

A package policy is often a more economical option as compared to individual coverage. It usually includes standard coverage and limits of liability that work well for businesses that are small or medium-sized.

Stay In Contact with Your Agent

Your insurance agent is going to be your best resource when it comes to maintaining your business insurance, and you should remain in regular contact with them, particularly if changes occur in your business.

When changes happen, you need to reevaluate and make sure your current coverage is still the most appropriate option.

Finally, when your insurance company or broker highlights ways you can reduce your premium, follow recommendations. With business insurance, for example, there might be recommendations or programs that will offer lower costs in exchange for disaster preparation or taking certain workplace safety measures. Don’t overlook these options, as the savings can add up if you participate.  

Author: Susan Melony