Every business owner is constantly on the lookout for ways of trimming down expenses. This is true for both owners of small and large businesses, but the issue is particularly dear to small business owners since their budgets tend to be small, to begin with. The following tips should help you avoid overspending on commercial insurance:
Get Only the Coverage You Need
Some people think there is no such thing as too much insurance, but there is. There is no need of buying coverage for risks you don't face; it's a waste of money. At the same time, you don't need to expose yourself to needless risks by skimping on coverage. Therefore, evaluate the risks your business face and make sure they, and only they, are fully covered. For example, you don't need employment practices liability coverage if you are still growing and don't have employees.
Watch Out For Coverage Duplication
In your zeal to protect your business from all threats, it may be possible to have overlapping coverage for the same risks – this is known as coverage duplication. For example, if your business laptop is protected by your commercial property insurance, you don't need to beef up your homeowner's insurance to cover the same laptop.
Bundle Your Insurance Coverage
Many insurance companies will give you discounts if you can give them more business; that is if you buy multiple policies from them. Therefore, if you need multiple insurance policies, consider looking for an insurance company that provides all the lines of insurance coverage and using it as a one-stop shop. For example, you can use the same company to protect your workers, guard against theft, protect your business from liability, and cover your business vehicle.
Limit Your Risk Exposure
Another useful practice is to limit your business' exposure to risks so that you don't have to file a claim every now and then. The more claims you may, the costlier it will be to cover your business. Therefore, create and implement a safety protocol, ensure your employees are properly trained, higher the right employees, and ensure all dangers are mitigated as soon as possible.
Reevaluate Your Insurance Needs Regularly
Lastly, you need to reevaluate your insurance needs regularly, say once every year. This is necessary because your exposure to risks change with the changing circumstances of your business. For example, the risk of your customers getting assaulted on your parking lot may reduce if you have enhanced the parking lot's lighting and hired a guard for the area.
For more information, contact your preferred insurance agent.
After we purchased our first home, we realized that it might be a good idea to evaluate our insurance coverage. Although we had purchased homeowners insurance before, we had never owned a policy as large as the one we would need for our new place. Also, our new home had a trampoline and a swimming pool, which made us worried about liability. To iron out the details, I decided to meet with our insurance agent. We talked about things like monthly premiums, coverage limits, and deductibles, and it was incredible to learn more about the terminology. This blog is designed to help you with the same types of questions.