7 Ways to Save Money on Small Business Insurance

Business Insurance

As a small business owner, you have put in your sweat and blood in order to expand and develop your business. Consequently, your business needs to be protected along with the employees. Just like you would protect your finances by using an accounting software or your property with security systems, similarly, secure your business’ future with the specific types of insurance that are appropriate. Opting for the right bundle of small business insurance would protect the interests of your organization against unforeseen circumstances.

Business Insurance

However, since you’re a small business owner, money can be a bit of constraint before investing in insurance. In order to make a smart insurance purchase which maximises coverage at reduced overhaul costs, you need to put in a lot of research and weigh your options. Being hasty with decisions around small business insurance can end up costing your company serious money in the long run.

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So, what’s the ideal approach to getting the right small business insurance?

#1 Know What You Need
If you’re a first-time insurance buyer, it is of utmost importance that you figure out what you require out of it. What are the risks that your business needs to be insured against? How many employees do you have and what sort of coverage do you need for them? How much can you spend in purchasing insurance? These are crucial and important questions that you need to answer beforehand. This will save you from unnecessary hassles while you start looking for different small business insurance policies.

#2 Evaluate Different Policies for Protection and Risks
Before you purchase an insurance policy, take a good hard look at it to ensure that you get the required coverage. For example, your company doesn’t need to be insured against landslides and avalanches if your office isn’t located in a mountainous terrain. There’s no point insuring your company for a risk it doesn’t face. It’s an additional expense that you can instead divert towards something more useful.

Settle for smart choices while making an insurance purchase. Don’t get carried away by the idea of getting the most economical insurance policy. Be smart and spend wisely instead of being a miser who tries to save a few bucks and ends up a loser. If you’re having difficulty deciding, an insurance agent can help you determine whether the policy is suited to your needs adequately.

#3 Get an Independent Agent’s Advice

Image Credit TomorrowMakers

Image Credit: TomorrowMakers

An independent insurance agent will help you access information from multiple insurance companies. They are better equipped to guide you in picking a suitable policy based on your specific business needs. Even though your company might have to pay the agent for his/her services, what you get in return, right insurance buying advice.

#4 Compare Quotes from Multiple Carriers

Look up policies

Image Credit: MyInsuranceClub

Look around and compare prices of multiple policies from different companies before you make a purchase. This will help you find an insurance policy which is well suited and the best deal available to your company. Look up policies offered by Max Life, SBI General, Kotak Life Insurance, Future Generali and IDBI Federal.

Also, you can adopt the practice of paying the premium in full. Monthly instalments may seem more cost-effective, but you can get bigger discounts if you make full payment upfront.

Bundle Multiple Insurance Policies
Save money for your small business by purchasing multiple insurance policies from the same company. It works in the same way as getting a discount when you buy something in large quantities. Ensure that you are aware of your policies thoroughly to avoid redundancies in the future or added costs.

Increase your Deductible

Image Credit Progressive

Image Credit: Progressive

A good way to save money upfront while taking a business insurance is to have a higher deductible. That’s because having a higher deductible typically lowers your premium. Having said that, go through your accounting software and ensure that your company’s finances can support paying the deductible amount stated at the time of filing a claim.

Additionally, a higher deductible will also discourage you from filing small claims. This is particularly useful in the long run as businesses can often avail discounts from insurance providers if they have been claim-free for a certain period of years.

Invest on Loss-Prevention Programmes
Invest in loss-prevention programmes like security systems, accounting software and workplace safety programs to reduce your business risk. Preventing dangers like property damage, financial risk or auditing errors and preparing against disasters (natural or man-made) will help reduce the risk of a claim, which is when your company might get a price break.

Change Your Payment Method
You know how certain companies give a discount if you pay for their service at once or if you opt for a plan that’s spread out over a long term. Well, similarly, insurance companies often give a discount if you pay the premium amount in full at once. This discount can also be applicable if you pay your premium for a whole year at once, instead of monthly instalments.

Before you purchase or renew your old policy, it’s in your best interest to sit down and properly review it. Call your insurance agent and discuss your insurance needs, changes in your business (relocation, new assets, employee numbers etc), adjustments to your business model, or even rate changes if you see them. It is super important to communicate this information to your agent to ensure that you pay the right amount of coverage. This is an opportunity to protect your business to the best of your ability and reduce what you pay to protect it.

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