Purchasing commercial insurance to protect your business is one of the key parts of being a responsible business owner. While you want to make sure you are fully covered, you also don’t want to make unnecessary payments that will get in the way of growing your profits. Here are 7 tips for reducing your commercial insurance costs.
- Do your research
Even if you get a good deal with one insurance outlet, that doesn’t mean you can’t find a better one elsewhere. Commercial insurance providers evaluate risk based on certain algorithms, meaning their systems are designed to send out different quotes based on the same information.
We recommend asking your insurance provider if they offer loyalty bonuses or some sort of incentive for long-term customers.
- Consider bundling
Many insurance providers will offer discounts for customers who hold multiple policies with them. For instance, if you own a home and a car, you could save money by purchasing both policies under one umbrella.
Business owners also have the same option with their commercial insurance. This is called a business owner’s policy (BOP) and it incorporates different types of insurance into one plan at a discounted price. Note that many BOPs don’t include extras like worker’s compensation or professional liability insurance, so you might need to purchase an additional policy.
- Increase your deductible
A deductible is an amount you are responsible for covering before your insurance provider pays out the remainder. For example, if your car repairs cost $1000, and you have a deductible of $500, you will first pay $500, then your insurance provider will pay the remaining $500.
A lower deductible means more risk for the insurance provider, so they will protect themselves by increasing your premiums. Increasing your deductible makes you eligible for lower premiums, allowing you to save money in the long run.
- Shop around for group rates
Sometimes you can get a discounted rate on your insurance policy by joining a group in the same niche. This could mean that if you join a professional organization, you might be able to get reduced premiums. That said, there’s a chance you might have to pay a fee to the organization, so make sure you consider all the costs involved before signing up.
- Change your method of payment
Many insurance providers offer discounts to their customers who pay in full, which could be up to 15% off annually. Additionally, you could also save money by authorizing direct debit for your monthly premiums as opposed to paying a paper bill.
- Be cautious
Even with a lower premium, you still want to avoid filing claims. Keep in mind that each time you make a claim, your monthly costs will increase. We recommend taking steps like driving safely and eliminating fire hazards in your office to continue saving money on your premiums.
- Evaluate cost vs. value
Lowering your monthly costs is important, but at the same time you should make sure that you have enough coverage. For example, if there was a flood at your workplace and you didn’t have flood insurance, you would pay more out of pocket for repairs than you would for your monthly premiums.
To save on your commercial insurance, contact Smyrl Insurance today!
