The future of your business depends on protecting it today

Key Takeaways:

  • Your business can save on insurance and still get the protection it needs.
  • After a disaster, 40% of businesses don’t reopen. The right business insurance will keep your business from becoming a statistic.
  • Assess your risks. You might not need some coverages and you might need to beef up or add others.
  • A talk with your independent insurance agent is your best bet to achieve a balance of coverage and price.

You’ve worked hard to build a successful business. It’s important to keep a sharp eye on revenue and profit, and like any small business, you have to watch every penny and keep expenses to a minimum. Unfortunately for some companies, that means foregoing insurance coverage. 40% of small business owners don’t have any business insurance at all, leaving them unprotected in the face of theft, fire, expensive lawsuits, and other risks.

Insuring your business is important, even if it’s one of the 81% of small businesses that don’t have employees. Insurance prepares you for the unexpected. Likely, you don’t have the cash reserves to settle a slip-and-fall lawsuit or rebuild after a fire or a strong hurricane. You may think insurance is too expensive and you’d rather take your chances, but what would you do if the worst happens? 

In the case of being hit with a natural disaster, 40% of businesses don’t reopen, and if they do, 25% fail within a year and 90% within two years! Business survival depends on managing your risk, which means having the right tools at your disposal, and business insurance is one of them. 

Still worried about the cost of insurance? Here are eight great ways to save money on business insurance. 

1. Know which policies you need

Choosing which policies you need may be confusing, and your agent is the best source of information when it comes to what your unique business needs are. Here are the most common business policies and what they cover:

  • General liability insures you against third-party claims for property damage and bodily injury, as well as libel and slander.
  • If a customer claims an employee did not perform to professional standards, which means your customer suffered a loss, professional liability insurance covers you.
  • Business interruption insurance reimburses you for lost revenue and expenses when your business is closed due to a claim. 
  • Cyber liability protects you from lawsuits and compliance measures after data breaches, hacking, and ransomware attacks. If you think you’re too small to hack, think again. Small businesses are three times more likely to be attacked than their large counterparts. These cyber crimes cost small and medium businesses millions annually.
  • Commercial auto covers any vehicles you use in the course of doing business.
  • If you have employees, workers’ compensation is required in the State of Florida. You might also need other policies, depending on your industry. Your agent will be a big help there.  Be sure you’re covered for Florida hurricane season. Wind and flood are not covered by your usual policies. 

2. Compare pricing by using an independent insurance agent

You might have experienced pricing differences in home and auto policies, and business policies are no different. Policy prices vary from carrier to carrier. Some insurance companies place their focus on a specific kind of business, so if your line isn’t theirs, you could pay more. 

In addition to the big companies that advertise on TV, there are regional carriers that can be cheaper. Start a conversation with an independent insurance agent who doesn’t work for just one carrier, and explore your options. If you already have insurance, you might be able to get the same coverage at a lower price. 

3. Packaging policies can save you money

A business owner’s policy, or BOP, combines the common types of business policies – property, general liability, and business interruption – into a single plan that is less expensive than purchasing each policy individually. This package doesn’t cover everything, though. You might also need workers’ compensation coverage and professional liability insurance, neither of which are included in a BOP. These would require separate policies. 

4. Examine risk versus cost

Cyber liability insurance is important for every business but there are other policies you might not need, and dropping those can be a great way to save. You might be insuring a car with your business when you don’t use it for that. Or perhaps you are paying for workers’ comp when you have no employees. Take a look at your real risks and pay for only the coverage you need. 

5. Consider bundling

It isn’t just personal policies that can be bundled together. Talk to your agent. If you own a home and a personal vehicle, you could save money on business insurance. Most carriers offer discounts if you purchase multiple lines of coverage. This could be a great way to save without making any other changes to your coverage.  

6. Increase deductibles

Your deductible is the amount you pay before your insurance policy will. If you can afford it, increasing your deductible will save you money, at least in the short term. Be sure you can afford to pay your share if disaster strikes.

7. Check into payment discounts

You could save money – maybe even 5% – on your policies if you pay for six months or a year of coverage upfront instead of paying in installments. If you do choose to pay in installments, make your payments on time. Coverage lapses due to nonpayment mean higher rates when you’re reinstated.

8. Manage your risk

Insurance companies like customers who don’t file claims, so the number of claims you’ve filed over time can impact the cost of your policies. To save money on business insurance, you have to manage risk. Take a look at safety procedures and other things that could create an issue. If you don’t file claims, carriers will often offer a discount. 

Avante: Save money on the business insurance you need

As small business owners ourselves, we understand how important it is to protect your business with the right insurance, and the need to save money. We have a commitment to educate, advise, and empower you to make the right decisions based on your unique needs. 

At Avante, we’ll work with you to build the comprehensive coverage you need with a deductible that works for you. Reach out today, because you never know what tomorrow brings. At Avante, we’re always standing by.

This blog and website are made available by the publisher for educational and informational purposes only. It is not to be used as a substitute for competent insurance, legal, or tax advice from a licensed professional in your state.