If you looking for ways to lower your commercial insurance rates, then you are not alone. Nowadays, it seems like every business owner is trying to find ways to reduce costs and cut expenses. So, the $99,000 question is then, “How can we keep our business premiums down?”
Here are 6 ways to keep business premiums down:
- Shop around
- Choose a higher deductible
- Buy a package policy
- Choose an agent that understands your business
- Ask about specific actions you can take to prevent losses
- Avoid losses
1. Shop Around
Don’t assume that everyone has the same price. Just like supermarkets vary in food pricing, so do insurance companies. The lesson? It always pays to get several quotes, which is what our professional team of advisors here at InsuranceHub specialize in: competitive rate quotes & transparent choices.
Here are a few things to keep on mind:
- Be sure to get the names of insurance companies or brokers who specialize in your type of business. Call them so that you can compare prices and understand the types of services they would provide.
- Check the financial health of the insurance company with A.M. Best and Standard & Poor’s. Your insurance policy is only as good as the companies financially stability.
- Remember to read trade magazines for insurers in your industry.
- Check with your trade association or any group that represents your business may for recommendations.
2. Choose A Higher Deductible
This works just like your personal car insurance does. Remember that the deductible is the amount of money you are responsible for before the insurance policy kicks in. So it makes sense that the higher the deductible, the less you will pay for the policy. On the other hand, don’t make the mistake of setting the deductible so high that it will be a financial burden for you to pay the deductible if you have a loss.
3. Buy A Package Policy
Individual policies from different insurance companies can get expensive. On the other hand, a package policy, like the BOP or Business Owners Policy, is designed to save you money.
4. Choose An Agent That Listens
First make sure you have an agent that understands your business and industry. The more the agent understands about your overall business and finances, the better they will be able to find the best priced coverage for you. Tell them about any changes that you have had during the year. In fact, it makes business sense to have an annual commercial insurance checkup that will keep your agent up to date.
5. Ask What You Can Do To Prevent Losses
Did you know that you may be able to reduce your premium by following your insurer’s specific recommendations?
Here are a few examples:
- Workplace safety tips
- Disaster preparation
- Installing alarms
- Installing fire sprinkler systems
- Setting up policies to prevent discrimination in the work place
- Education policies to prevent sexual harassment
6. Avoid Losses
As you can imagine, insurance costs are lower for customers with better claim histories. So, common sense tells us that the more losses you have, the higher your premiums will be. A track record of losses tells the insurer that you are not very careful and there will be more losses in the future. In fact, a bad loss history may lead to being dropped by the carrier and having trouble getting insurance from any private insurance company.
We hope these suggestions are helpful. Why not schedule a business insurance checkup today with an insurancehub.com agent? Get started online or call us directly at (877) 341-5728.