Smart Ways to Save Money On Your Business Insurance Premiums
Commercial insurance aka business insurance is necessary for all of business entities. These policies provide coverage to the business owner for the unique exposures to which he and his business could be exposed. Insurance policies can be purchased to protect almost any type of business risk and help indemnify the owner against the risk.
Working with a trusted insurance agent is crucial for proper coverage and protection. Here are seven steps the business owner can take to save on business insurance premiums:
- Talk with your insurance agent in New Jersey about “business specific” insurance coverage. Depending on the type of business, the policy coverage types will vary. Insurance costs need to be included in the business budget from day one. If you own and operate a bar, restaurant, or a limousine service, these ventures could bring substantial costs for premiums and need to be budgeted for.
- The correct amount of liability coverage is critical. A small business, even a solo-preneur operation, might want to consider a minimum liability limit of $1 million. A lawsuit could jeopardize your livelihood and your liability coverage can protect you against that financial risk.
- If possible, lower your liability risks and exposure. Do a walk-through of your location with your insurance agent to determine if you have liability exposures. These could include cracked windows, a parking lot with potholes, a cracked or wet floor, loose handrails, exposed electrical outlets, or other business-specific risks. Addressing these potential risks may bring a reduction in premium.
- Do you belong to any professional organization that offers a group insurance rate? Request a quote and compare it to the price and coverage provided by your local agent.
- Package policies may lower your premium. If you purchase all of your insurance protection from one carrier, it may offer a discount. Ask your agent which company would provide coverage for general liability, property risks, commercial auto, umbrella policies, or other business coverage you may need.
- Have a regular “insurance check-up.” An annual review with your insurance agent may uncover newly instituted premium reductions for which you may be eligible. You may have upgraded or updated your facilities or business practices and may qualify for a discount or a different type of policy.
- Avoid filing frivolous insurance claims. In many cases, an insurance company will rate your business based on a five-year period. The rating includes looking at the amount of claims filed. In some cases, it may make sense not to report a small loss, but simply absorb the cost because any size loss could negatively impact the premium you pay.
When planning a business venture, make certain you have a trusted New Jersey insurance agent as part of your team.