Before launching a new business, you need to study the risks involved carefully. Many businesses have both financial risks and safety risks that can lead to injuries or property damage. Business insurance, however, doesn’t have to be expensive. The following saving tips for business insurance can help minimize insurance premiums for small business insurance.
- Identify the Business Insurance Coverages You Need
The first step in finding the right business insurance is to assess your needs, as each business has its unique requirements. What works for one company might not work for another regarding standard insurance policies. So, it’s best to start with a standard plan and then add the specific types of coverage extensions that fit your needs.
You have to meet state legal requirements for certain business insurance. If you plan on hiring employees, you will need workers’ compensation, which covers employees for at-work injuries and illnesses. Some states require disability insurance as well. If the company owns vehicles for business use, you’ll need a commercial auto plan. Customize your insurance coverage to mitigate the maximum number of risks.
Business owners who invest in commercial property should get commercial property insurance, covering many of the same risks as homeowners insurance. It will protect your investment from natural disasters, theft, and vandalism. Most businesses commonly carry general liability insurance that covers the costs of lawsuits.
A Business Owners Plan (BOP) combines both commercial property and general liability coverage and can be purchased at a lower cost than buying the two plans separately.
- Consider Various Coverage Options
Irrespective of your preferred insurance plan, including BOP, it won’t cover every possible risk your business faces. However, you can add different types of specialized coverage known as extensions or endorsements. These add-ons are different for every business. For example, if your business shuts down temporarily, you can cover costs with business interruption insurance. There are many other options that you may consider.
Having multiple coverages instills confidence among clients. It must be seen as an investment and not an added expenditure.
- Ask for Available Discounts
Several discount opportunities for insurance savings are available, but you have to ask for them since insurance companies typically don’t advertise discounts. If you need to purchase different types of insurance, ask your insurance provider if bundling all the coverage under one plan qualifies for a discount. Here are other ways to get business insurance discounts:
- Lower risks of burglary and theft by investing in security equipment
- Keep claims to a minimum
- Move to a location with a lower crime rate
- Raise your upfront deductible, which lowers monthly costs
- Consult an Insurance Provider
Only an insurance provider can identify many hidden risks in a business. You must consult one before buying the insurance. They can help find you the coverages your business needs at the best prices. Besides getting you the best deal, they can answer the several insurance-related questions you may have.
- Review your Policy Annually
A valuable business insurance savings tip is to review your coverage needs. Talking to the insurer can help you focus on essential coverage for your business while avoiding overpayment for coverage you don’t need anymore. Ask about discounts for lowering risks. You must review and update your policy annually. Every business undergoes changes over time, so your policy must reflect these changes.
How Family Financial Group Can Help
Do you need a customized insurance plan for your small business? That’s our specialty, and we’re glad to help with more savings tips for business insurance. Contact Family Financial Insurance Group today to get started.