Being properly insured is a crucial part of running a strong, stable business. But nobody wants to pay more than they should. Getting the right coverage at the right price keeps your business protected and can help your bottom line. Feel like you’re paying too much in premiums? Here are five tips that can help you lower your insurance costs.
1. Raise your deductible.
Just like health, property or auto insurance, the quickest way to lower your premiums is to raise your deductible – or the amount you’re responsible for paying when you file a claim for an accident or other event that qualifies for coverage. Just make sure your business can afford to pay that deductible amount up-front if a claim is necessary.
2. Combine your coverages.
Because of the complex range of exposures that each business can have, you’ll likely need a number of different coverages to protect the business operations. Property, general liability and commercial auto are just a few business insurance options that may be considered. Combining these coverages under a single policy can be more cost effective than purchasing them separately. BOPs tend to be an ideal insurance solution for small- to medium-sized businesses. For a larger or more complex business, you can purchase a Commercial Package Policy which is tailored to your specific business insurance needs. If your business requires specialty insurance that’s not standard in a BOP or Commercial Package Policy, then you may need to purchase endorsements or a separate policy to meet that insurance coverage need.
3. Take safety seriously.
Create a safety plan and enforce it. Give your employees a copy of the plan and make sure they can put it into action. A safety plan can not only help eliminate problems that turn into accidents and injuries, it also gives your insurer greater confidence in you. When done right, a good safety program helps your business reduce losses and lower your workers’ compensation and general liability premiums.
4. Create an un-risky business.
Take advantage of your insurance carrier’s risk control expertise. Whether it’s a theft-prevention program or human resources training, using risk control experts lets your insurer know that you’re a business owner who’s committed to safety and loss prevention. And to your insurer, it also means you’re likely to file fewer claims – and they might be willing to lower your premium if you institute their suggestions.
5. Inform your agent.
Meet with your independent insurance agent to discuss your coverages and how they match up with your business. As your business changes – so should your insurance policies. Sometimes coverages can be redundant or perhaps you’re still paying to cover a part of your business that’s significantly different than it was when you purchased the policy. Make sure you’re only paying for the right coverage and saving money while you’re at it.
Want to learn more? Talk to your local independent Grange agent for complete details on our business coverage. This article is for information purposes only. For specific coverage details, always refer to your policy. If the policy coverage descriptions in this article conflict with the language in the policy, the language in the policy applies.