Insurance is a fact of life for business. When you own a small business, choosing the best kinds of business insurance policies and then paying the premiums can seem overwhelming, especially considering all your other daily concerns. There are some steps you can take with your insurance to help keep premium costs at a minimum.
1. Learn more.
Your first task is to learn as much as you can about your best options for insurance. Read up on what other small businesses are purchasing based on industry and company risks. Ask an agent for input as well.
2. Bundle up.
As with home and auto insurance, bundling policies often gets you a discount on premiums. Purchase your different types of business insurance with a single provider and you may be able to save.
3. Consider higher deductibles.
Increasing the deductibles on your insurance will lower monthly premium costs. If fewer monthly out-of-pocket costs sounds good to you, this might be the way to go. But, higher deductibles mean more upfront cost to you if you have to file a claim. Evaluate your business to determine which option is best for your circumstances.
4. Manage your risk.
Implement a management plan for both external and internal risks. One internal risk to consider is fraud, such as revenue skimming, billing, expense reimbursement, and other forms of corruption. Other risks to plan for include factors such as losing a key employee and an accident or illness that leads to your disability. The U.S. Small Business Administration provides a helpful guide for risk management.
5. Reevaluate your insurance needs annually.
Situations and markets change, and so can your coverage needs. At renewal time, check in with your business insurance agent to discuss whether changes need to be made to your policies.
If you own a small or medium-sized business, find out more about your business insurance options and needs. Read our article What Types of Insurance Does Your Business Need? You can also learn about industry-specific insurance here.