Commercial insurance, which is often called business insurance, can be expensive. As a business owner, you want to make money, but if your costs are too high, they can cut into your profits. Nevertheless, commercial insurance is a necessity. Here are a few tips to lower the cost of your commercial insurance:
Choose a Higher Deductible
As long as you maintain enough extra money in your business account to cover a higher out-of-pocket expense from an insurance claim, consider increasing your deductible amount. As a rule of thumb, your policy premium becomes lower as your deductible becomes higher.
Drop Unnecessary Coverage
There are many coverage options for commercial insurance, but not every option is applicable to your business. Review your plan with your agent to ensure that you are not overpaying for coverage. Rates for business insurance, such as liability coverage, are largely dependent on the type of work performed and the number of hours worked.
By posting safety procedures and providing training regularly, you can help your employees incur fewer accidents. Each time an insurance claim is filed, your premium rates can be increased. It is important to avoid incidents that warrant a claim as much as possible.
Stay in Business
Just by keeping your business open, you may incur a discount. Some insurers offer discounts for experience or time-in-business. Each time you restart a business under a new employer identification number, you could reset your business tenure and increase your commercial insurance rate.
If you have several types of commercial insurance, such as Worker's Comp insurance, liability insurance and commercial auto insurance, consider bundling your coverage. By allowing the same insurance company to handle your coverage needs, you could be eligible for a significant discount.
Look for Safety Discounts
Some insurance companies offer discounts if your business meets certain safety standards. Similar to the way that safety features on your vehicle can lower your car insurance rate, installed safety devices, such as fire alarms, can lower your business insurance premiums. Your insurance agent will be able to discuss bundling discounts that may be available for your business.
Commercial insurance can be expensive, but it is necessary to protect your business. If you already have coverage, consider lowering your deductible or grouping all of your coverage under one insurance policy. If you plan to make changes to your commercial insurance, contact your insurance agent. He or she can help you find the most cost-effective options for your business. Contact a company like Affordable Insurance to get started.