In Commercial insurance or more commonly known as business insurances invokes many types of policies for different types of businesses that incorporate risk in order to make a profit. The primary focus on any business policy should always be adequacy to protect the property and the business itself from any loss and or damages which includes liability. Below are 10 methods to help you save on business insurance.
1. First and foremost consider your “business specific” insurance costs: You may be surprised on how many startup ventures never included insurance costs into their budget. For some businesses such as taxi services, insurance is a major operation expense.
2. Have the right amount of Liability protection: For small businesses, even if you are a one man operation, always consider having the minimum liability limit of $1,000,000 / $ 2,000,000. The 1 million amount is denoted per incident, and the 2 million is “aggregate” total limit per year; this should be considered the absolute bare minimum coverage amount anything less could put your business in serious financial risk.
3. Group Rates: Some professional organizations offer group rates, with that being said it is always a good idea to check and see of any group discounts for your type of business operation.
4. Increase deductible: It is usually a rule of thumb when it comes to most types of insurance, the higher the deductible, the lower the cost of your insurance. Always a good idea to get a quote with different deductibles to help determine which works best on your budget.
5. Lower your liability Risk: When you are running your own business there is always something to look out for, among the most important is your physical locations state. Keep an eye out for wet floor surfaces, cracked or crumbling steps, cracked windows, parking lot with uneven, cracked or broken areas, loose handrails, exposed electrical outlets, and related exposures. Many of these somewhat minor repairs / details could result in a sizable lawsuit if they are the primary cause of a serious accident.
6. Central Alarm System: This type of security system will save you money on your business property insurance and not to mention peace of mind. These systems are programmed to automatically alert fire and police authorities in the event of a fire or break-in.
7. Package Policy over Just Liability Policy: You can save money by combining other risks such as property (i.e. inventory, building), an umbrella policies, business income or including your commercial auto insurance to your existing policy.
8. Regularly Evaluate Coverage needs: The amount of protection should increase as your business grows. Under insuring a business is a sure way putting you and your company in unnecessary risk. It is recommended to look over your insurance needs at least once a year.
9. Relocation: Insurance costs vary by county; consider getting insurance quotes by county and see if there is any significant change in cost.
10. Avoid frivolous claims: Most insurance companies will rate you based on any losses (claims) filled in the past 5 years. Sometimes it makes sense to consider not reporting small loses and absorbing the costs since this might affect your insurance upon renewal.