12 Ways To Save Money On Small Business Insurance

Saving money in any way possible is essential when owning a small business. The little expenses can eat your profits to the point of running you into the red. Insurance is one of those things that you have to have, but you do not have to pay an outrageous amount for it. You need to take a little time and work through the 12 ways to save money on your small business insurance to help the bottom line go up into the green a little further.

1. Bundle Your Coverage – You will want to take all your business-related insurance and combine them into one big umbrella policy. If you have any personal insurance needs, you can add them under the same big policy. This will save you money on each and every policy you add. You will obviously have to pay for each one, so every addition will increase your monthly premiums, making it look like you are paying more. Still, when you investigate them, you will see that if you paid for each separately, you would owe much more.
2. Remove What You Do Not Need – If you read through your policy from front to back, you may be surprised at some of the things you find have been included. Things that you do not need and never asked for. The reason for this is simple; most insurance companies have basic packages they offer to consumers, which include a variety of the top things those small businesses need. You must have the insurance carrier remove what you do not need. Be careful not to remove something important, so take the time to ask questions if you are in doubt.
3. Increase Your Deductible – The easiest way to save yourself some money on your small business insurance is to increase the amount of the deductible that you must pay. The higher you put this amount, the lower your premium costs will be. There is a catch, though. The higher the deductible, the more you will have to pay out of your pocket if you ever must file a claim. Be careful when adjusting this so you do not end up in a situation that you cannot afford to get out of.

   

4. Claims Free Discount – Many insurance carriers will offer you a discount if you go without filing a claim with them for a year. They may not provide this cost reduction if you do not ask, so if you are unsure if they have one to offer, ask. The most that they can say is no. If you find a better insurance carrier when you make the comparisons, you should ask them upfront if they have this discount. If your first choice doesn’t, but your third choice does, you may want to evaluate the order in which to place them.
5. Compare Insurance Carrier Offers – Go to an online comparison site like iselect and ask them, “how much does business insurance cost?” Let them do the work for you. They will match you with offers from their partners that will work with you. Remember that the cheapest offer will not always be the best offer. Go through them and see which one offers you the level of coverage you need at the most affordable price possible.
6. Group Rates – Insurance carriers like to have as many small businesses use them for insurance needs as possible, which is why some offer group discounts for companies in the same niche. Ask your carrier if they participate in any of these group rates, and if not, you need to check out some of the offers you have to see if any of your top picks do. It can save you a sizeable amount of money, so it is worth the time to check into it.

   

7. Insurance Premium Payments – It may seem like a great idea to pay your insurance premiums once a month, but if you check out your billing cycle, you will see that you are paying more than if you were paying the costs once a year. Yes, this may be a sizeable chunk of change to start out with, but the savings you will obtain at the end of the year will be well worth it.
8. Control Your Business Safety – The safety of the business and the people working there is up to you. Take the issue head-on and implement some ways to reduce the number of accidents. Bring in some safety experts if unsure what to do, and have them evaluate your operations. They will give you a rating and ideas to help improve that rating. The safer your business is, the cheaper your insurance rates will be.
9. Know What Insurance Coverage You Need – This may be a little difficult to figure out on your own because there are numerous small business insurance choices. They all have their own benefits, while others may not even pertain to you. That is why it is crucial to research, ask questions, and bundle the ones you need together into one policy. If you need help figuring this out, an insurance agent can help you out, or you can hire a business lawyer to consult you through the process.

   

10. List Employees Correctly – When obtaining your worker’s compensation insurance, you need to make sure that you list your employees in the correct classifications. This can significantly impact the cost of your premiums because some workers will cost you more than others. People working for you with the most dangerous jobs will cost you the most. If you put them all into that category, your premiums will be higher than they need to be.
11. Business Credit – The creditworthiness of your business is a little different than your personal credit numbers, but they are just as important. Your business will be rated based on income, debt, and payment history. It is so essential that you, as a business, pay all your bills on time and in full. If you cannot pay everything in full, such as business credit cards, you will need to at least pay the minimum amount on time.
12. Yearly Evaluations – You need to look hard at your business at least once a year because things can change in that amount of time. Ensure you are still adequately covered and have all the discounts you qualify for. Use the online comparison site to ensure that you still get the best coverage at the best price.

    

That is all there is to save money on your small business insurance. Not all 12 of these steps may apply to your specific business, and there may be other tips that you could use to cut some of your insurance costs. The critical thing to remember is that you need to take the time to analyze your company, your workers, your insurance needs, and your insurance policy. If any conditions need to be changed, do not put them off. Do it now so you can make some money for the upcoming fiscal year.