Managing Your Business Insurance Premiums
Insuring your business can be expensive. Shop around. Increase your deductible. Realize the bottom-line benefits of managing risk. By taking proactive steps, you can save money.
Save money on business insurance
Commercial insurance is a highly competitive market, and it’s important that you explore all available options. Here are some things to keep in mind that may help to reduce the amount you pay.
Understand your policy. Start by knowing your risks and what’s covered by your policy. Work with your insurance representative to make sure you have adequate coverage for your business and you’re not paying for options you may not need. In addition:
If your business model is changing or has shifted to an online platform, ask about cyber risks and potential insurance protection
If your business has unique business characteristics, products or services ask about specialty product insurers
Explore your options. It’s possible another insurance company can provide a different coverage package at a lower rate. Contact a variety of insurance providers to understand what they can offer your business.
Adopt and practice risk management strategies for your business. Make sure your insurance representative is aware of your risk management practices and how you are minimizing risks. Actions you take to protect your business can help to:
control the cost of your insurance premiums
create a safer workplace
protect your business’ reputation
improve operations and save resources
protect the environment
reduce liabilities and increase the stability of operations
assist in clearly defining insurance needs
Increase your deductible. Insurers may be able to lower your premium if you increase your deductible or change your coverage limits. It’s important to know your cash flow and what deductible you’d be comfortable paying if you must make a claim.
Enhance both physical and cyber security. Installing or upgrading physical site security measures and systems for intruder or fire detection, can result in lower premiums.
Evaluate your coverage every year. Ensure your policies reflect your business’ current earnings, assets, risks, potential liability exposures and any losses.
Avoid over-insuring your business property. Insure property for what it would cost to rebuild with like-quality materials in the event of a loss.
If you have questions about commercial insurance, please call IBC’s Business Insurance Helpline at 1-844-227-5422.
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