6 Most Important Factors That Can Raise Your Small Business Insurance Premiums

All business owners strive to keep their risks and costs under control. In most cases, people get the chance to attain this goal by purchasing the right type of small business insurance. In order to identify the best coverage, one must take the time to compare rates and benefits and analyze different offers.

Since there is no standard solution that could help you skip the research phase, it is mandatory to do your homework before signing on the dotted line. Did you know that there are several factors that could actually raise your premiums and make you spend more money out of your own pockets on a monthly basis? Below you will find 6 such elements and effective ways to avoid them.

1)      The Risk Level and the History of Your Company

Generally speaking, an insurance company will always look at 2 essential aspects before making you an offer: the risk level of your industry and the risk level and the history of your company. Obviously, if you own a mining company you will spend more money on insurance than someone who runs a restaurant. The history of your company is extremely important, and it comprises lawsuits, potential claims, injuries and more or less costly property damage. You cannot change the errors of the past or the hazards associated with the market on which you operate, but you can comply with all legal requirements, ensure safety training for all your workers, implement additional safety features and document every single improvement that you invest in to become eligible for considerable discounts.

2)      Lack of Research

Business owners are usually very busy and can’t afford to waste any time, not even when it comes to buying insurance. Do you know what type of coverage you would actually need? Are you able to spot the most convenient deals, without relying on expert guidance provided by a lawyer or a broker? To eliminate all your uncertainties and concerns, it is highly recommended to start the insurance hunt early. Count on Insurance Quote Depot to compare small business insurance rates by zip code. This way, you will manage to spot affordable policies in your price range and discover the best carriers with a few clicks.

3)      Failing to Ensure Ongoing Training for all Your Staff Members

Regardless of the size of your company or your field of activity, you will have to invest a considerable amount of money in ongoing employee training to keep your insurance premiums low. All staff members should be familiar with office procedures and customer relations protocols. Moreover, they require regular safety training to keep risks at bay. All the special trainings that you pay for should be properly documented. This is the best method to turn your workplace into a much more comfortable, safe environment, eliminate hazards and prevent claims and lawsuits that could impact the image of your company and the price tag of your small business coverage.

4)      Failing to Comply with Legal Regulations

When business owners deliberately ignore safety reviews and workplace safety guidelines and regulations, they instantly expose themselves to considerable fines and also put their workers’ safety and wellbeing on the line. A long non-compliance history will only work to your disadvantage, forcing you to pay more for your business coverage.

5)      Not Buying Insurance at the Right Time

Insurers appreciate your loyalty and love to do business with clients who do not represent a liability. We are talking about customers who make a lump sum payment, opt for a policy with a higher deductible, implement additional security measures to protect their premises and their goods, invest in employee trainings and document everything. On the other hand, insurance companies take on big risks when it comes to doing business with people who make monthly payment, have a poor credit history or are likely to file more than a few claims in the near future. Gaps in business coverage can and will influence the price tag of your next insurance policy in a negative manner. As a rule of thumb, buy all the coverage that you need (homeowner’s insurance, car insurance, motorcycle insurance, life insurance and health insurance) from the same provider. This strategy will bring you one step closer to the big discount that you are hoping to get.

6)      Neglecting Specific Risks

Did you know that you can assess certain risks based on the location of your company? For instance, some regions are prone to natural disasters. In certain areas, earthquakes, floods or powerful storms can destroy your property and force you to cope with major losses. You should take these perils into consideration. Moreover, certain areas have gained a bad reputation because of their high crime rates. If your business is located in a bad neighborhood, you should try to keep this threat under control by installing a smart security system and by investing in appropriate safety training.

Most importantly, you should buy additional coverage to ensure the highest level of protection for your company and also for your employees. Failure to identify, address and report specific risks can get you into a lot of trouble. It will most likely lead to gaps in business coverage that will eventually raise your premiums. Don’t try to sweep potential issues under the rug, thinking that worst-case scenarios can’t become a part of your reality. Since you can’t predict the future, you can’t be certain that your business won’t be affected by a natural or man-made disaster in the near future.

Prevention is better than cure. If you want to run a thriving business in the long run, you should do everything in your power to manage all factors that could compromise its image or lower its productivity. A good small business policy tailored to your real necessities can be your best ally in the event of an accident, a calamity, a lawsuit or a burglary attempt. Many dangers are waiting for you just around the corner. Stay safe by investing in the right type of coverage. Compare small business insurance rates by zip code and make an informed decision.