How to Spend Less Money on Small Business Insurance

Man sitting at desk with files and insurance business cardSmall business owners usually have limited financial possibilities and will do everything it takes to save a pretty penny. They are constantly trying to reduce expenses and get their hands on the best deals. When it comes to buying small business insurance, most of them are eager to identify policies carrying tiny price tags and offering them the highest level of protection that they can afford. If you are currently in this situation, you should know that the insurance hunt doesn’t have to be a boring, stressful, time-consuming process.

To simplify your mission and spot the most tempting offers in record time, all you have to do is compare small business insurance rates by zip code. Afterward, once you know what carriers bring the kind of coverage meeting your specific needs, you can schedule an appointment with an insurer. The research phase is mandatory, especially if you strive to get a good deal. Take all the time you need to investigate several alternatives and keep reading to discover a few effective cost-saving ideas enabling you to spend less money on your next policy.

1)      Raise Your Deductible

This is the first change that you could implement to lower your premiums. It basically means that you agree to take on a greater risk to reduce the value of your monthly payments. In the event of an accident or any other kind of disruptive phenomenon impacting your business, you would be forced to put a significant amount of money on the table, and your insurer would have to come up with the rest. Be careful though: this strategy only works if you can afford to cope with considerable expenses.

Also, you have to understand that in this particular situation, it wouldn’t make much sense to file a small claim. For instance, if you were to file a claim for a loss estimated at 1,000 dollars and your deductible would be 900 dollars, your insurance company would owe you only 100 dollars, a very small amount of money that can and will stop you from getting your claim-free bonus.

2)      Filing Small Claims

The example listed above indicates that submitting small claims is a very counterproductive practice. Let’s assume that a hail storm has impacted the functionality and aesthetics of your roof, which now requires repairs estimated at 600 dollars. It’s no secret that insurance companies hate it when you file a claim; people who submit a large number of claims pay higher premiums than the rest. Ask yourself the following question: is it really necessary to involve the insurance company for such a small loss or could you actually take care of this problem on your own? Insurance experts advise us to file a claim only when we don’t have the means to cope with the loss; otherwise, if the damage triggers negligible costs, it is recommended to spend money out of your own pockets to cover expenses. This is the course of action if you want to get that claim-free bonus.

3)      Minimize Your Own Risks

Start by implementing a risk management plan. Can you actually identify and address the main threats associated with your company? You may have structures or faulty equipment that could put the safety of your employees, clients and business partners on the line. Get them fixed. A fire could devastate your building, triggering severe injuries and extensive property damage. Install sprinklers and smoke detectors. Your company could be raided by a group of vandals or burglars who could steal some of your most valuable belongings and/or destroy valuable equipment. Install a high-end commercial security system and keep your most important assets locked in safes. As you can see, for every potential problem there is at least one excellent solution. All these elementary measures of precaution will minimize your risks and help you get additional discounts. You should know that prudence is a great quality, which is appreciated by various insurance companies. So if you plan to save big on small business insurance, list all the changes that you can make to keep your business out of harm’s way.

4)      Buy a Business Owner’s Policy

Generally speaking, a business owner’s policy will enable you to spend less money on insurance. This insurance package is suitable for small and medium companies and represents a fraction of what you would have to pay if you were to buy policies separately. When in doubt, it is highly recommended to discuss your options with a broker, a lawyer, an insurance agent or a friend or family member who knows more than a thing or two about small business insurance.

5)      Annual Checkups Are Always a Great Idea

Your business evolves from one year to another. The type of coverage that may work for you this year may be considered insufficient the next. This is precisely why you should do everything in your power to monitor and address the ever-changing needs of your business in a timely fashion. Annual checkups allow you to understand which components comprised by your insurance package are actually a good investment and which ones are wastes of money. After your annual checkup, you could add or remove additional policies, based on your unique necessities, demands and financial possibilities. All in all, an annual meeting with your insurer will help you spend your money wisely and keep risks at bay.

If you want to profit from a good deal you have to understand that the first offer made by a certain insurer is not necessarily the best one that you could get. If you are worried that your insurance agent could convince you to buy more coverage than you actually need or that he could guide you towards an insanely pricy policy, note that you could protect your best interest by relying on Insurance Quote Deport to compare small business insurance rates by zip code. All you have to do is compare numbers with a few clicks, spot the most tempting offers and get in touch with your insurance agent right away.

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