Tips to Help You Save on Your Small Business Insurance Premiums
If you’re running a small business, you have both a lot of risk and a lot of reward ahead of you in your career. You may not have the scale and budget of the big, corporate businesses, but you’re still your own boss, and that means you can make the decisions that can ultimately help or harm the success of your venture. Insurance is one of those areas where you dont want to take any chances, and you want to make sure everything is done right. After all, if something does go wrong, you want your recovery and financial compensation to go smoothly; this period of time is the worst moment for additional worries to come to a head.
With that in mind, there are a few things you can do with regards to insurance premiums that can help make your insurance experience a bit smoother, and possibly even save you some money.
Get Bundled Policies
If its possible, its better to get your various types of insurance bundled under one company. This means that rather than having one company handle your fire insurance, while another handles theft insurance and still another takes care of flood insurance, try to get as many of your different insurance needs put under one roof. This not only makes things simpler from an administrative perspective, but often, with multiple forms of insurance under one company, you’ll enjoy a discount, which translates into savings for your premiums in general.
Absorb Smaller Losses
As with auto insurance, any claims that you make will be reflected in your insurance premiums. The more claims you make, the more premiums may rise, especially if you are making claims on a frequent, regular basis. One way to avoid ramping up your premiums is to simply accept some of the smaller losses you might incur, and write those off.
This way, if your claims are few to none, then when something much bigger happens, such as a fire, or other major event, your premiums won’t rise as much. Don’t look at your insurance as a way to get free repair or compensation money. The more claims you make, the more you pay every month on premiums.
Avoid Coverage Gaps
While running a business can often mean delayed payments for one reason or another, take extra care to avoid this when it comes to your insurance. Missing an insurance payment reflects badly on you, and may result in a rise in your premiums, which ultimately will cost you more money in the long run.
More importantly, however, is that you dont want to be caught without insurance because of a missed payment. If theres a gap in your insurance coverage just as a major theft occurs, or a renovation goes badly and incurs unforeseen damage, the entirety of that financial burden now rests on you, even if none of it is your fault.
Manage Your Risk
One of the best ways to enjoy savings on your premiums is to ensure you invest in the things that can protect your business. Burglar alarms, fire alarms, and other precautions can help mitigate issues that are beyond your control. Good business practices like keeping your floors dry and clean, and ensuring that the area around your place of business is free of snow can also do a good job of lowering the incidence of accidents for which you may be liable, such as slips and falls.
Saving on your insurance premiums is essentially a matter of taking care of your business both financially and physically. Maintain regular, diligent business practices, but make sure the environment and working conditions of your place of business have taken reasonable, cost-effective measures to reduce risk.