As a business owner, you may already have a lot of things to pay for. One of which is business insurance. However, as your business grows, the expenses also increase. So, one of the goals you should achieve is to lower your business insurance premiums. At the same time, it shouldn’t affect the quality of protection your business receives.
Of course, when things are all safe, there is the right time to decide on altering your insurance coverage. However, some businesses only review their insurance coverage once they need to file for claims. In your case, you should review your insurance coverage as often as possible, especially when there are significant changes.
1. Choose Bundles or Packages
One of the ways to lower your business insurance premium is to bundle various coverages in one policy. If you have an insurance broker or adviser to help you in making decisions, they can guide you with the right insurance coverage to bundle in one policy.
Of course, when considering the coverage for your policy, ensure that you have everything you need, and not just avail of the bundle to lessen the cost.
2. Increase Your Deductible
However, when choosing the option to increase your deductible, make sure that it’s not going to backfire. For instance, if you ever need to file for claims, you should have enough money out of pocket to pay for the insurance provider before they approve the claims. But on the bright side, you don’t have to pay huge amounts of money monthly or whenever you need to pay for your premium.
3. Improve Workplace Safety
Another thing that can help you lower the price of your premiums is if you have a safe working environment. At first, you may still lack some things that can improve the security of your office or store. But as your business improves, you should also secure the right certificates, install cameras, and hire security personnel.
If the insurance provider finds out that your workplace doesn’t have many risks, they can allow you to have the same coverage at a lower price.
4. Review and Update Your Coverage Regularly
Change is one of the things businesses encounter all the time. So, whenever there are changes in your company, such as when you hire more employees, you need to improve the coverage for their specific needs, so you don’t have to pay for their medical bills and medications in case they encounter an accident while working in your company.
Meanwhile, even if there aren’t many changes in your company, you should still review and update the coverage as there are still instances when you and your insurance adviser notice something you no longer need. And if you do, you can omit the specific coverage, and you’ll save more money.
5. Look for Options and Compare Rates
There’s no such thing as insurance that fits all. Each individual or company have specific needs, which is why you should shop around and compare rates. Usually, insurance brokers and advisers are the ones who are always updated in terms of the best offers each insurance provider gives. So, instead of comparing rates on your own, hiring a broker is the best option, especially if you’re not familiar with all possible insurance options.
6. Maintain a Good Claims History
If the insurance provider sees that your company is easy to work with, they can offer you discounts. On the other hand, if you often file for claims, it may seem you’re not careful enough or your business is too risky. So, when they see that your claims history has too much going on, you may be marked as a high-risk customer, and they’ll require you to get higher premiums.
7. Take Advantage of Discounts
When negotiating with the insurance adviser, don’t hesitate to take advantage of the discounts and promos they offer. For instance, if you’re updating your insurance, and you haven’t filed a claim for a long time, they can provide discounts that can help lower your premiums without affecting your security.
8. Invest in Risk Management
Risk management covers everything you need to keep an eye on for your business. At the same time, having a comprehensive risk management strategy can point you out the right business insurance coverage you should get. For instance, if customers often pay online for your products and services, you should secure cyber liability insurance in case hackers and online frauds try to steal relevant information from your clients.
9. Choose the Right Coverage Amount
Over-insuring and under-insuring are both risky, especially in terms of your finances. If you over-insure, you might need to pay higher premiums that you don’t even need. On the other hand, under-insuring will force you to pay out of pocket in case of unexpected situations.
Final Thoughts
Lowering your business insurance premiums may seem complicated at first, but there are many things you can do to prevent spending too much money on insurance. We hope this guide helps you achieve your target cost. If you want to share your experience in handling insurance premiums, don’t hesitate to comment below!
