3 Ways To Save Money On Your Commercial Insurance
As a business owner, you look for ways to save money anywhere you can. Every dollar you spend affects your profit margin. One area to consider when looking for cost savings is your commercial insurance premiums. While commercial insurance is necessary, there are ways to reduce the costs while maintaining the coverage you need. Here are a few things to try.
1. Use A Commercial Insurance Broker
Both an insurance agent and broker can help you purchase the necessary commercial insurance products your business needs. But there is a difference between an agent and a broker. However, both may be listed as commercial insurance agencies.
Insurance agents often only represent the product line of their insurance employer. An insurance broker offers policies from numerous providers. They are usually able to shop around in-house for better pricing and products to meet your business needs.
Utilizing a broker allows you to stay with the same agency even if you switch providers or carriers. Staying with the same broker enables you to build a professional relationship with that person. They will not only understand your business but also know any prior claims or problems you have had.
2. Review Your Policies Annually
The needs of your business can change quickly, especially when you are a small growing business. Changes to your business model and structure can also mean changing the commercial insurance coverage your business requires.
Annual policy reviews are essential to determine if your coverage still meets your business needs at the best cost. Inspect your policies to see if there are duplications in your coverage, coverage you do not need, or substantial increases in your pricing. If you identify any of these, discuss them with your broker.
3. Consider An Umbrella Policy
Investing in a commercial umbrella policy is a great way to extend your commercial insurance coverage at a reduced price. An umbrella policy will provide an additional layer of protection that picks up where your other business liability coverages stop.
An umbrella policy increases your liability limits and broadens coverage for some items that your existing policies may not cover. It compliments your other liability coverage by providing additional coverage when a claim reaches your other liability limits.
The extra coverage helps to protect your business from potential claims that could bankrupt your business and make you, as the owner, potentially liable. The beauty of an umbrella policy is that it is often much cheaper than the coverage you can purchase individually.
Contact a commercial insurance agency like United Counties Insurance Group to learn more.