Business insurance is essential to protect your company and assets from liability losses, accident-related lawsuits, workers’ compensation claims, and other unfortunate events. Otherwise, you have to pay all these expenses out-of-pocket, which could devastate your business, depending on the extent of loss or damage. If you are wondering how much it will cost and how to save on it, read more to find out.
What Is the Cost of Business Insurance?
The cost of business insurance varies depending on:
- The Size of Your Business
Insurance companies consider your business size (number of employees) to calculate your premiums. If you have more employees, you will pay higher premiums.
- Risk Exposures
Different businesses have different risk factors, depending on their nature of work and the services/products they offer. If your business possesses more risk, you will pay more.
- Coverages You Need
The cost of your business insurance depends on the type and amount of coverage you need. Businesses purchasing basic commercial insurance pay less than those who buy customized policies with comprehensive coverage.
- Claims History A business with a lower/clean claims history is considered safe and less risky, so their premiums can be affordable.
Money-Saving Tips for Business Insurance
- Shop Around
Explore various independent insurance carriers and compare their policies in terms of cost, coverage, and endorsements to find an affordable provider.
- Choose Only the Required Coverages
If your business doesn’t own or use vehicles, you don’t need commercial auto coverage. Likewise, choose the coverages depending on your business’s needs and risk exposures.
- Consider a BOP Policy
It’s good to buy a BOP policy that combines commercial liability, property, and interruption coverages into one policy. This way, you can save the costs that you spend on buying them in three separate policies.
- Classify Your Workers Properly
While buying workers’ compensation coverage, accurately categorize your employees using correct numeric codes to save on premiums.
- Increase Your Deductible
Increasing your deductible (out-of-pocket amount to be paid before your policy kicks in to cover losses) will help reduce your annual premiums.
- Review and Update Coverage
Your business may grow, and its requirements may change every passing year. Therefore, it is good to review your policy and add or remove coverages according to the new changes or risk exposures. Excluding unwanted coverages can help save costs.
- Implement Safety Features
Adding safety features to your business site, including CCTV cameras, safety alarms, and smart locks, can reduce the risk of theft and vandalism, thus reducing your premiums.
- Look for Discounts
Some insurance providers may offer discounts for having clean claims records and participating in loss-prevention programs. You can ask whether your carrier provides such discounts.
How to Choose the Right Insurance Company for Your Business Insurance?
Ensure the independent insurance agency you choose:
- Works for multiple carriers, so you can shop around to find the best-in-class policy at an affordable rate.
- Has years of experience and expertise in writing business insurance policies.
- Is ready to customize policies according to your specific needs.
- Helps you make informed decisions by discussing all the possible coverage options.