It’s no secret that the cost of running a business is increasing. When budgets tighten, it can be tempting to cut corners—but one area you shouldn’t skimp on is your insurance coverage.
The good news is that saving money on commercial insurance doesn’t mean you need to compromise on protection. With a few strategic adjustments, you can lower your premium while keeping your business fully covered. In this post, we’ll walk you through five proven ways to reduce business insurance costs without sacrificing peace of mind.
If you’re managing multiple insurance policies from different providers, you might be missing out on major savings. Many insurance companies offer Business Owner’s Policies (BOPs), which combine essential coverages like general liability and property insurance into a single policy.
Bundling policies not only simplifies your insurance management but can also unlock multi-policy discounts. For example, adding auto coverage for your business vehicles to the same insurer might qualify you for further savings.
By consolidating your insurance into a BOP or a comprehensive package, you’ll likely save a good chunk of money while ensuring your business is protected from various risks.
Raising your deductible is another effective way to lower commercial insurance premiums. Your deductible is the amount you agree to pay out of pocket before your insurance coverage kicks in. By opting for a higher deductible, you’re taking on a bit more risk, but it can significantly reduce your monthly premiums.
Does this mean everyone should increase their deductible? Not necessarily. Make sure your business has enough cash flow or a contingency fund to cover the deductible in the event of a claim. For low-claim businesses, like consulting firms or marketing agencies, this strategy often makes perfect sense.
Insurance providers reward businesses that take proactive measures to reduce risks. By investing in risk management practices, you’ll not only create a safer work environment for employees and customers, but you’ll also make your business more appealing to insurers.
Here are some examples of risk-reduction strategies that could lower your premium:
When insurers see that you’re taking steps to prevent claims, they may offer discounts or preferential pricing for your policies.
You wouldn’t rely on last year’s budget to meet this year’s needs, so why would you stick with a static insurance policy? Your business changes over time, and your insurance coverage should reflect these changes.
Set up an annual review of your policy with your agent to ensure you’re not over-insuring or paying for outdated coverage. For instance:
This simple step can uncover savings while ensuring your business is properly protected.
Did you know that filing frequent or small claims could make your premiums skyrocket? It’s true. A clean claims record shows insurers that your business poses less risk, which can result in more favorable rates.
To achieve this:
Think of it this way: by avoiding unnecessary claims, you’re building a track record of reliability with your insurer, which they’re likely to reward.
Already tried the basics above? Here are a few extra ways to save on commercial insurance costs:
Cutting corners on insurance may seem like a quick way to save, but it’s a risky strategy that could leave your business vulnerable. Instead, focus on lowering commercial insurance premiums with the actionable tips we’ve covered here. By bundling policies, increasing deductibles, managing risks, and regularly reviewing coverage, you’ll protect both your business and your bottom line.
Want personalized advice to help your business save even more? Speak with an insurance advisor today to explore tailored solutions for your unique needs.