http://skywaysmedia.co.uk/websites/crown-highways/ Strategize with your agent to save money without jeopardizing your business’ future
- Commercial insurance can be expensive, but there are ways to save
- Not having the right insurance can mean a major loss if disaster strikes.
- Comparison shopping is a good starting point.
- You have to realistically assess your risks. Reducing those risks through prevention policies can save you money.
- Take a look at all of your policies. Maybe you have some you don’t need, but get the professional advice of your agent before dropping coverage.
- There are plenty of ways to save, from raising your deductible to purchasing a policy package, so talk to your agent.
If you own a business, insurance is a must, but the coverage that you need can be expensive. Luckily, there are ways you to save when buying commercial insurance and still get the coverage you need without risking your business. You’ve worked too hard to lose everything simply by using your insurance policies as a way to cut expenses.
It’s not worth saving money if you’re sacrificing financial protection for a short-term solution. The right insurance coverage safeguards your business’s wellbeing. Having the proper policies will save you money in the long run if something were to happen.
There are many ways for pragmatic business owners to save when buying commercial insurance. Here’s how.
1. Comparison shop with an independent agent
Policy prices vary from carrier to carrier because some insurance companies place their focus on a specific kind of business. Regional carriers can be cheaper than national ones. Talk to your insurance agent and explore your options. You may not even have to modify your coverage to get a lower price. Your agent will make sure you’re doing an apples-to-apples comparison, so you don’t lose key coverage.
2. Know what coverage you need
Your agent is your best friend when it comes to choosing the important coverage you need. You may or may not need certain types, but here are common policies and what they cover:
- General liability – Covers third-party claims of property damage and bodily injury, as well as libel and slander.
- Professional liability – Covers you if a customer claims an employee did not perform to professional standards, which meant your customer suffered a loss.
- Business interruption – Reimburses you for lost revenue and expenses when your business has to close due to a claim.
- Cyber liability – Protects you from things like data breaches, hacking, and ransomware demands that are common today.
- Commercial auto – Covers vehicles that are used for commercial purposes.
- Workers’ compensation – Required in the state of Florida if you have employees.
There are also other coverages you might need for your industry. These can include product liability, hurricane, flood, and other things not covered under the usual policies. Your agent can use their industry knowledge to point you in the right direction.
3. Look at risk versus the cost of protection
You need protection from both known and unknown risks, but if you’re spending money for coverage you don’t need, this is a great place to save. For example, you don’t need commercial auto insurance if you don’t use vehicles for business purposes. Think about the real risks you face, and then get coverage based on what you really need.
4. Raise your deductible
Increasing your deductible can mean cost savings, but you have to consider several things. Once again, you’re going to look at your risk. Insurance companies assess your risk level to decide the policy premium as well as a minimum deductible. You also must consider your average cash flow – can you pay a large deductible without damaging your ability to meet other expenses?
Also, keep in mind that some losses are tax-deductible. This means you could be at a disadvantage with a large deductible when it comes to taxes. Talk to both your insurance agent and your accountant before choosing that high deductible policy.
5. Purchase a policy package
A business owner’s policy, or BOP, combines the common types of policies – property, some liability, and business interruption – into a single plan that can be less expensive than purchasing each policy individually. Be careful, though. You also need workers’ compensation coverage, and you likely would want professional liability insurance, neither of which are included in a BOP, and would require separate policies.
6. Ask about bundling
If you own a home and a vehicle, you might be able to save when buying commercial insurance. Carriers usually offer discounts if you buy multiple lines of coverage and you could save a lot without making any changes to your coverage. Talk to your agent.
7. Look at payment options
You can sometimes save money on your insurance by paying in full instead of installments, with the result of reducing your premium without sacrificing coverage. It’s also important, if you make installment payments, to make them on time. If your coverage lapses due to nonpayment, reinstatement can mean much higher rates.
8. Prevent claims by managing risk
Of course, insurance companies prefer customers who don’t file claims. When deciding whether or not to insure you and how much your premiums will be, the number of claims you’ve filed over time counts. Carriers will often offer a discount for a lack of claims. A risk management plan that includes good safety procedures can help keep your rates low.
The most important tip? Remember that price isn’t everything
You could end up losing money in the long run if you don’t have adequate protection. That bare-bones policy may save you cash on premiums now, but you could lose everything without the right coverage. Use these tips and sit down for a good talk with your agent before making any decisions.
Avante Insurance: The commercial insurance you need and nothing you don’t
We’re small business owners ourselves, so we understand how important it is to protect your business. We also 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 will bring. 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.