5 ways to save money on business insurance
If you are a small business owner you may have been shocked to recently see your insurance premiums rise dramatically.Some small business owners are even reporting that their premiums have been raised between 30-40%. You may also be shocked to learn that according to several surveys you may be one of the luckier small businesses. Some small businesses have had their business insurance premiums increase by as much as 600 percent, sometimes with only days to pay. It's no wonder then that as many as 83% of small businesses have listed high business insurance premiums as their single biggest cost. Yet before you scramble to find the money to pay the latest business insurance premium increase you have been hit with, check out this list of ways to save money on business insurance and see what you can do to reduce your business insurance bill. Here are 5 ways to save money on business insurance-
- Reduce your business insurance coverage. Savvy small business owners will comb through their business insurance policy and see what areas of business insurance they can do without. For example, ask yourself if there are deductibles that you can increase to lower your insurance rates? If you are carrying fleet or vehicle insurance, make sure that you are carrying only collision insurance on older vehicles.
- Take advantage of better group rates by purchasing your business insurance through a business or professional organization. Many different business organizations, (such as Chambers of Commerce or your community's business alliance), offer insurance plans and/or discounts on business insurance to their members. Keep in mind that the bigger the group, the more diffuse the risk and therefore the lower the insurance rates are. You will still have to pay to become a member of the group or association, but you could still end up saving lots of money compared to the cost of purchasing the same kind of business insurance the group offers on your own.
- Lower your business liability risk as much as possible. Start by talking to your insurance agent or broker to find out what you could do to lower your business insurance cost.You can ask things like: Would installing a security system reduce your business insurance premiums? Explore every possible discount that can lower your overall premium. Also it is important to realize if you are offering particular products or services that are increasing the risk of insuring your business from the insurer's point of view.By simply eliminating these "risky" products, you could dramatically lower your premiums.
- Be careful where you market your product. If you export your product or service to a high risk area (as far as insurance is concerned) you may be unwittingly increasing your insurance premium.Be sure to examine the overall profits of any market that could be causing your insurance premium to go up.
- Consider relocating your business to an area with lower insurance rates. The costs of various types of business insurance can vary widely, depending on where your business is located. Vehicle insurance, for instance, can vary widely from area to area. Be sure to do the research and see if relocating is worth your while.
While these are specifics things you can do in order to drop the costs of your insurance there is one more thing you should try.Financial experts advise that the most important thing you can do to reduce the cost of your business insurance is to shop around. To often small business owners should go through an insurance broker and/or get quotes from different companies instead of just sticking with the same company. There very well may be a deal out there that's much better than the business insurance deal you are getting now.