In today’s business environment, you should think about small business insurance in the same way that you think about your website – both are must-haves when it comes to keeping your operations running. Since having business insurance is a necessity, you’ll likely want to know how you can save money on it while still maintaining the coverage you need. Follow Hiscox Small Business Insurance’s 4 tips for doing just that.
1) Shop Around
Business insurance policy premiums differ among insurance companies and depending on your line of work. Ask friends and family for the names of companies or agents who specialize in your type of business, then get quotes from at least four to compare prices and service. Also run your short list of possible insurers by rating companies such as A.M. Best and Standard & Poor’s to check on their financial stability.
2) Combine Coverages
If your small business needs both general liability (GL) coverage and property insurance coverage, you should consider going with a business owners policy, or BOP. This policy combines protection from bodily injury and property damage claims with coverage for your business furniture and equipment. And a BOP is almost always more cost effective than the two coverages purchased separately.
3) Follow your Insurer’s Recommendations
In many cases you can reduce overall premium costs by implementing a list of actions that your insurer recommends. Some give discounts for security systems, while others offer policy price reductions if you complete their workplace safety course. Ask your insurer for details; you might be able to save money for something you’re already doing!
4) Review your Coverages Twice a Year
The only constant is change, and this applies to your small business insurance needs too. Twice a year compare your insurance coverage against your assets and needs. It’s possible you’ll find duplications or unnecessary coverages that you can cancel, saving money. It’s also possible that your insurer has rolled out a new coverage since you last spoke, one that could generate cost savings.
Finding small business insurance at an affordable cost does not have to be a headache. Follow these 4 basic steps and you will be well on your way to having smart and affordable insurance coverage.