The best ways to keep your business insurance costs low are to know exactly what you need, and get the amount that is appropriate for your company. For example, if you never drive a vehicle in the course of doing business, then you most likely do not need commercial vehicle insurance. However, if you do need commercial auto, find every possible savings opportunity within that plan. Be sure to hire experienced drivers with excellent driving records, for example. You can also require them to take a driver safety course. And finally, bundle your auto policies together for multi-policy discounts.
There are definitely ways to find affordable business insurance plans, and one of the most effective ways to get cheaper insurance and trim the fat from your expenses is to cut out excess coverage that you do not actually need. Just make sure you don’t reduce costs by eliminating business policies or important coverage you do need.
Here are a few ideas for ways to save on your business insurance costs:
- Affordable Commercial Property Insurance: If your commercial property insurance provides more coverage than the value of the property, you can cut back. For example, if you are covering a $200,000 building with $500,000 in coverage, you’re paying too much. You can also typically bundle your general liability insurance into a business owners policy, or BOP, to save costs.
- Affordable Business Liability Insurance: Your insurance costs will depend on the size of your business and the risks you face. If you are a sole proprietor or have a small retail store, a $5 million policy may be more than you will ever need. Ask your agent whether a $1 or $2 million poliyc would be adequate based on the nature of your business. As with your commercial property coverage, your general liability insurance can typically be bundled into a business owner policy.
- Affordable Commercial Auto Insurance: If you or your employees drive in the course of doing business, you don’t want to get cheap auto insurance that compromises the quality of your coverage. However, you can often save money by bundling your business vehicle insurance with your other plans, such as your liability coverage or business owner policy. Another way to cut costs on your commercial auto insurance is to raise your deductible. Consider requiring your drivers to take a safety training course, which may result both in fewer claims and lower cost insurance.
- Loss of Income Insurance: This coverage will help replace your business income and pay your regular costs, such as payroll and rent or mortgage, if for any reason you are temporarily unable to conduct business. You don’t want to scrimp too much on this coverage or you could end up paying your business mortgage after a fire or other devastating event, without the business income to pay for it. One of the best ways to save costs on this coverage is to bundle it into a business owner policy. (Source: TrustedChoice.com)
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