5 Ways to Save on Business Insurance

Making solid financial choices is an essential part of operating a company. Before you can make these selections, you need to consider your alternatives, one of which is your business insurance price. We’ve included some popular methods below to help you save money on business insurance, but remember, your local independent insurance agent is the expert on coverages and possibilities, so leverage their experience to your advantage.

1. Increase the deductible

Consider paying a bigger amount of your claim before your insurance coverage is triggered. Paying a greater deductible reduces the amount the insurance company pays, resulting in a lower premium.

2. Package your policies

Purchasing insurance in a bundle, such as a Business Owners Policy (BOP), generally results in a cheaper total rate than if you obtained individual coverage. This is commonly referred to as “bundling,” and it simply means that the package insurance provides you with many coverages for a lower cost than if you bought them individually. Consider the package policy to be similar to a restaurant buffet in that you receive the full buffet for one price, regardless of whether you pick every item, as opposed to purchasing from the a la carte menu, where you pay individually for each item requested.

3. Your history matters

Insurance prices may be based on the idea that “history repeats itself.” As a result, if you, as a company owner, consistently pay your personal expenses late, it stands to reason that you will also pay your business invoices late. A company owner’s inadequate credit history impacts both his or her personal and business insurance premiums. Examine your personal credit history and endeavor to establish and maintain a strong personal and commercial credit record. Most importantly, never allow your company’s insurance policy to expire due to nonpayment termination. Financially prudent enterprises may pay cheaper rates. Driving history is important, too. Not just the company owner’s, but also the driving history of the personnel that use your commercial cars. One alternative is to exclude certain drivers from your coverage. This implies that if an excluded driver suffers a loss while driving your insured vehicle, the claim is unlikely to be reimbursed. As a result, the premium you pay does not cover the possible losses of excluded drivers, which may lower your premium.

4. Be safety-minded

Follow all safety guidelines from your insurance provider. For example, provide a safe working environment for your staff and enforce the safety guidelines you’ve created. Failure to do so may result in higher rates owing to a greater risk of harm. Create a disaster preparedness strategy to protect your company’s assets and personnel in the event of a crisis. If you hire subcontractors, provide confirmation that they solely have their own insurance. Mutual Benefit’s insureds receive free risk management resources. Ask your independent agent for access to these free resources.

5. Consult your independent agency

Your local independent agent is the best source of information on the coverages required to protect your company. Furthermore, since your independent agent represents more than one carrier, he or she may compare your coverage options with numerous carriers to get not just the cheapest pricing but also the greatest fit for your specific coverage requirements.