For any business, and especially smaller ones, expensive insurance policies can become difficult to pay. That’s only become more prevalent throughout the COVID-19 pandemic. Finding options to lower commercial insurance costs are not that difficult, though, and we offer five ways to explore possibilities for reducing your business insurance.
1-Review Your Existing Policy
Most commercial insurance policies renew on an annual basis. But before you allow an automatic renewal, take some time to review the fine details. Check your coverage to be sure your details are accurate, because if you have downsized or changed the type of services you offer, you may find that you qualify for less expensive coverage. Do you have newer equipment that gives you safety advantages? Consider every line of your policy to look for pathways to lower your commercial business insurance costs.
Insurance companies categorize costs based on risk. Perhaps your employees would benefit from safety training and updated work gear. Providing ongoing education in your business practices will help convince your insurance company that you are working to keep your risk factors low. Let your independent insurance agent know that you are proactive about the safety and security of your employees, customers, and business, and remember to be transparent when identifying employee terminology.
Suppose you have a claim and you did not categorize job descriptions properly: In that case, you could end up not only paying out of pocket but losing your coverage altogether. Consider updating your alarm system and keep on top of any new technology that will protect your company from theft and loss.
Not every accident or mistake ends in an insurance claim. Statistically, if you experience the same issue over and over, one of those events will end up as a claim. If you document those sorts of difficulties, you will realize a problem before it becomes a disaster. Be aware of updates in employee status and payroll changes. Notify your insurance agent if you need to reduce or increase the number of people you are covering in your business. And be sure you need to file a claim because keeping your claims low will keep your costs lower.
You have heard it over and over. Bundle your policies to save money. Review your various insurance needs and find out if you can combine your policies to reduce your expenses. A quick call to your agent will answer most of your questions about your options. Consider paying your premium on an annual basis. You may be paying an extra fee for the convenience of making a monthly payment, but if you can afford to pay once a year, then maybe you should make the switch.
5- Deductibles and Discounts
Everyone knows the the higher the deductible becomes, the lower your premium is. If you are struggling in the current economy and weighing whether to purchase commercial insurance, then consider a higher deductible first. Owning a business without proper insurance coverage could bankrupt you and your family if disaster strikes. Discounts do exist, but you need to discuss ideas with your agent to help you find ways to qualify for lower insurance costs.
At Independent Insurance Associates, we are committed to helping your business thrive. We are here to answer all of your business insurance questions, from how much is commercial insurance to how you can lower your annual premium. We represent several premier insurance providers to find the best coverage for the lowest price, so contact us today to discuss a new policy or review your existing coverage for potential savings.