Whether it's on your weekly grocery bill or an annual insurance policy, no one turns down a good discount. But did you know that it's pretty easy to save big on your business insurance? We know, so you don't have to.
Fortunately, an independent insurance agent has the answers you need and is a helpful asset to every business and its success. They can sit down with you to learn about your business and make sure you're leveraging all the discounts available to you.
Can You Get Discounts on Business Insurance?
Yes! Whether you just started your dream company and are starting small or you've been in business for years at an established company, discounts on business insurance are out there. You just need to find them.
The easiest way to find important business insurance discounts is to work with your independent agent. After all, they're experts in the field and will already have a good idea of different discounts that your business can take advantage of. In addition, insurance companies look at things like location, years in business, claims history, number of employees, and risk factors when insuring your business. Your agent can go through these topics with you and determine where your business might want to beef up before applying for insurance.
How Do Carriers Come Up with Their Business Insurance Rates?
Business insurance rates are made up of a combination of different aspects of your business that are taken into consideration to determine how risky your business is. A few of these aspects include:
- Your business's industry
- Your business's safety features
- Your business's vulnerability to natural disaster
- Whether you work with flammable materials
- Your business's legal liability
- The chances that one of your employees will be injured on the job
- The amount of deductible you're willing to pay in case of an incident
Carriers determine how risky your business is in order to decide how much insurance coverage they're willing to offer you.
How Can I Lower My Business Insurance Premiums?
Did you know that no matter your industry, there are several ways that you can lower your business insurance premiums? Here's how.
- Low loss history: The fewer claims your business has had to make, the better it looks. Obviously, minimal claims mean you have a safe business and you're much less risky for an insurance carrier to take you on. The lower your risk for the company, the lower your premium will be.
- Minimal risk operations: This goes hand in hand with a low loss history. Even if your company is a high-risk company, and if you've had zero losses or claims in the lifetime of your company, it will save you money in the long run. Some companies are naturally low-risk, but for companies that are high risk such as agriculture, construction, or mining, it's even more important to maintain minimal claims and losses.
- Safety practices: This is especially important for new businesses that don't have the years under their belt to have a clean claims history. Have a clear plan in place on how you're keeping your employees and your business safe.
- Property upkeep: Maintain a well-kept business and operations, and you can receive discounts and reductions in premiums. This is especially true on your property insurance.
- Business locations: If you're already established, there isn't much you can do about your business location. But if you're just getting started, your location will have a large impact on your premium. Businesses in small towns will cost less to insure than in big cities, and businesses inland with minimal environmental risks will have lower premiums than those near the ocean and at risk of a hurricane.
- Bundling: Just like with any insurance policy, bundling your business insurance can result in reduced premiums.
- Being part of a group: It’s common for an insurance company to specialize in a business niche, like farms or grocery stores. That insurance company will often offer special discounts to that type of business.
- Loyalty: Loyalty to your carrier can often result in discounts in your insurance premium.
What Are the Lowest Cost Carriers for Business Insurance?
Every business will find a different insurance carrier that provides the least expensive premium for them. There is no one carrier fits all when it comes to cheap insurance policies. However, there are some things you can do when obtaining a quote for your business insurance to help assure that you get the most affordable options.
- Understand business insurance and why you need it: Your typical business insurance includes liability, property, auto, and workers' compensation, but not every business will need all of these policies.
- Gather as much information as possible: You can find an extensive list of what information can help you get the best quote possible in this article.
- Work with your independent insurance agent: Agents are experts in their field and they've helped thousands of businesses find and keep great affordable insurance rates. They'll know the current rates available and how to find the best rate for you. Don't withhold any information from your agent, work with them fully, and provide any information they ask for.
Why Is the Cheapest Insurance Not Always a Good Idea?
A low premium may make your eyes light up, but that doesn't mean it's going to provide you with the coverage that you need. Cheap insurance quotes are inexpensive for a reason. There's a good chance they're cutting corners and might not offer you the protection you're expecting if you find yourself needing to utilize your policy.
Cheap insurance rates usually come through online quotes. While an online quote can get in your hands quickly, it will not be as tailored to meet your needs as a policy that you put together with your agent.
Does Changing Insurance Policies Result in a Lower Premium?
It can. Sometimes insurance carriers will sneak policy increases into your premium. That's why it's important that you review your business insurance every year with your independent insurance agent. Your agent should be keeping an eye on your policy and be able to recognize if the carrier is increasing your rate for unnecessary reasons. If this happens, it's likely that shopping around for new insurance can result in a lower premium.
What Can I Do if I Have to File a Claim?
If your business has to file a claim, chances are that your insurance premium will increase as a result. This is when your independent insurance agent really comes into play. Agents are renewing policies monthly for customers so they have a good feel for the market place, and they can shop for policies to save you money. Insurance carriers compete with each other and agents know this. As the owner of your insurance account, they can move your policy around to assure you're always getting the most affordable premium.
Here’s How an Independent Insurance Agent Would Help
Chances are you started your business because you're an expert in your field. That's exactly why insurance agents sell insurance because they know the industry and field better than your average Joe. An insurance agent is able to search through multiple carriers to find providers who specialize in this business insurance, deliver quotes from a number of different sources, and help you walk through them all to find the best blend of coverage and cost.
TrustedChoice.com Article | Reviewed by Paul Martin
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Expert Paul Martin