5 ways to save money on business insurance
When it comes to business insurance, this is one area in which you don’t want to cut corners to save on expenses. However, there are ways to save money on business insurance without it having a negative impact on your coverage.
If you want to find out how to save money on business insurance, the first thing you should do is an evaluation of your current policy in light of the amount of coverage you have vs possible risks. You may find that you are over insured. For example, if you don’t use a vehicle for your business, you don’t need commercial auto coverage. Likewise, if you don’t have employees, you’re not going to need employment practices coverage to be included in your policy.
On the other hand, after a thorough evaluation of your current coverage, you may find that you are underinsured due to changes in liability. While you may be saving some money on your monthly premium, if and when you have an accident, you could end up paying a lot more in the long term.
The key to saving money on your business insurance is to reduce costs without becoming underinsured. Shop around for business insurance with several commercial insurance providers. You could end getting varying quotes from the same information. The result? You may find significantly lower rates than what you’re currently paying without changing your coverage.
Another good way to lower the cost of your coverage is to get a higher deductible. However, you’ll have to pay the higher deductible before your insurance policy kicks in. So make sure that, if you increase your deductible, you’re able to come up with that amount in a hurry if you need it.
In some cases, it cost less to package your business policies. One example of a package policy is a Business Owners’ Policy (BOP) which combines several common types of protection into a single plan, often at a lower cost when compared to shopping for individual coverages. One caveat — many BOP’s don’t cover auto insurance, professional liability insurance, or workers’ comp. You may need to purchase several policies for these types of coverage.
Other tips for saving money on your business insurance include:
- Look for group rates
- Ask about loss-prevention programs and claims-free discounts
- Is there a cost savings benefit to changing your payment method
It also pays to work closely with your insurance broker. He or she can provide invaluable advice that can really help when it comes to protecting your business from unexpected accidents and disasters. Ask questions about what you can do to reduce risks to your business and prevent losses.
Updating your policies
Make sure that you’re keeping your broker informed about any major changes to your business which could necessitate updating business insurance policies.
If you’re looking for a business insurance broker in the L.A. area, contact Daniel Fraisse, Los Angeles business insurance broker. With more than 30 years of experience working with many of the major insurance companies, Dan Fraisse can get your business the best coverage at rates you can afford.