When you are starting a business, your objective is to make money. One simple way to achieve this target is to cut your business insurance cost without putting your ventures at risk. A well-informed entrepreneur can purchase business insurance, save a lot of money and get full protection. Here are five important tips, suggested by Consolidated Insurance Brokers, for reducing the cost of business insurance without exposing your business to serious risks.
Assess Your Business Risks
Your business, just like any other, has its own unique risks. Due to that, it has its own unique insurance needs as well. Therefore, it's crucial to do your own assessment before shopping for cheap insurance coverage.
There are policies that you will have to include on your list and others that you may include depending on your unique business needs. You should not buy business insurance for the sake of it. If your business has employees, you should have worker’s compensation, unemployment and disability insurance.
You should also consider purchasing general liability insurance. This policy covers your business for third-party damages, reputational damage due to libel and some legal defence costs. If you do not want to buy many different policies, go for a business owner’s policy (BOP) if you meet the criteria stipulated under a carrier’s terms and conditions. A BOP will cover your business premises as well, which makes it a better overall deal.
If you have a job site that might require serious insurance needs, Worksafe can provide a consultation free of charge to help you assess your insurance requirements. They'll also provide a safety action plan that can keep you and your employees safe.
Do not purchase a general liability policy or BOP thinking it covers everything you might experience. You should consider other important coverage options, such as business interruption. This might not be included in general business coverage, but can ultimately save you a significant amount of money. Apart from saving when you file a claim, adding more insurance coverage boosts your reputation with your customers.
Shop Around for Cheap Business Insurance and Discount Opportunities
Business insurance providers assess risk according to algorithms that can produce different quotes from the same data. Simply shopping your coverage with several providers, you could find a substantially lower rate than what you are currently paying. You might be able to bundle some of your various coverage plans into one plan that will give you a significant discount too.
If you are a small business owner and desire to keep up with changes within the insurance industry, shop your business policy annually. While you shop around, consider that some carriers do not only offer cheap small business insurance. They offer loyalty bonuses too. If yours does, do a cost-benefit analysis before making your final decision.
Talk to Your Insurance Broker
Savvy entrepreneurs know that they have to do their due diligence in searching for insurance coverage. With the help of insurance comparison tools and online resources, they find doing this very easy. It's still vital to get the help of a professional to compare different rates and coverage.
Finding a professional insurance agent is as important as finding a professional lawyer or accountant. Insurance agents have knowledge that the business owner does not. As a rule, you should always deal with licenced brokers only.
Review and Update Your Insurance Coverage on an Annual Basis
If you are a good manager, your business is constantly growing, and your insurance needs may be increasing as well. You may not need to renew some of the coverage you bought last year, or you may need to obtain more coverage. By reviewing and updating your coverage every year, you eliminate the possibility of being caught underinsured should disaster strike.
Make sure you understand the laws governing your area, and whether you can let some areas of your insurance lapse. There are also some confusing laws governing worker's compensation if the worker is performing in more than one state. This is why it's vital to have a professional giving you advice.