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How to Save Money on Your Business Insurance Policies

Great Business Insurance doesn’t have to be expensive. Whether you’re a one-woman operation working out of your garage, hiring your first employees, or already have a firmly established and growing company, make sure you’re getting the best rates possible for your insurance.

#1: Bundle Your Business Insurance Policies

Most business owners will need more than one policy to properly protect themselves against the risks associated with your particular industry. Because of this, insurance companies will offer discounts if you choose to bundle your policies together. For example, if you choose to combine general liability and workers’ comp you may get cheaper premiums for both policies.

#2: Choose a Higher Deductible

Your deductible is the money you pay out of pocket whenever you file a claim. When you choose to pay a higher deductible, you can often lower your premiums. It’s important to make sure you choose realistic deductibles- you don’t want to opt for a higher deductible if you couldn’t afford to pay that much in the event of an accident. However, if you’re financially able to raise your deductible, doing so will save you money in the long run.

#3: Prevent Claims

The more claims you file, the higher your premiums are. Practicing risk management by preparing for accidents is one of the best ways to save money on your insurance, because it keeps your rates down. There are easy ways to prevent a claim. Implementing thorough safety procedures is one of the most important things you can do to prevent claims from occurring. You can do this by making sure you’re up to date on health and safety standards for your industry, having adequate lighting, and maintaining a clean work environment. You’ll also want to make sure your employees are properly trained so they conduct themselves professionally and safely.

#4: Review Your Coverage Annually

It’s important to make sure your business insurance evolves with your business. Checking in with your insurance broker regularly will help you make sure you always have the coverage you need. If you’ve recently acquired a new vehicle for your business, for instance, you’ll want to make sure it’s covered under your commercial auto policy. Making sure you don’t have any assets left uncovered will save you money on potential lawsuits. However, if you’ve recently downsized or sold off assets you no longer needed, you’ll want to make sure you aren’t paying for unnecessary coverage.

#5: Don’t Let Your Coverage Lapse

Your coverage lapses when you forget to pay your premium, or choose to terminate your insurance policy. A lapse can be costly for a number of reasons. For one, you’re generally only covered for the duration of the policy period. If an accident happens after your insurance has lapsed, then any damages incurred during that time will come out of your pocket. Second, it may be challenging to find an insurance broker willing to cover you for the same rate you had before. A business that’s prone to lapsing is a risk for the agency, and that can make your rates more expensive.

#6: Prioritize

Finally, if your budget is pressed, prioritize. Which policies do you need the most? Which are the most important to you? Your insurance broker can help you determine which policies you absolutely need, and which you may be able to afford to do without. If you run a small mom and pop shop, you’ll probably need General Liability Insurance, but you may not need professional liability coverage, for example.

Keeping these tips in mind will help you keep your insurance premiums low, so you can focus your money on what counts- running your business. Citizens General is committed to making sure you get great coverage at an affordable rate. The best way to determine what type of business insurance coverage you need, and how much money you can save on it, is to talk to one of our experienced business insurance agents today.


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