When business slows, and you start looking for ways to cut costs, it may be tempting to rethink the cost of business insurance coverage to help trim the fat. But, reducing your overall insurance coverage and putting your business at risk is not the only option you have to control costs. Here are some things to consider and tips on how to save money on your business insurance.
Some Business Insurance is Mandatory
There are some forms of business insurance that you are required to carry by law. Worker’s Compensation insurance is required in most states. Commercial vehicle insurance for a car or truck owned by your business is mandatory in Michigan. Some types of businesses are also required to carry commercial liability coverage as a licencing requirement. Clearly, you won’t have a choice to eliminate these insurance costs, however, you can shop around for better rates. In many cases, packaging required coverage with other options can help to reduce the overall cost.
Other forms of Business Insurance
Your business is unique, and most insurance providers have specialized coverage to meet the varying needs of businesses. For example, bars and restaurants need coverage that hair salons and spas don’t and vice versa. Trucking companies have very different requirements from taxi services or ridesharing. Professionals, like dentists, doctors need malpractice insurance, which is similar, but not the same as the errors & omissions coverage that protects lawyers and accountants. The point is that your business has particular needs. It is always a good idea to talk to an insurance agent who can help determine what specific coverage you need and can help find it for the right price.
Is Your Package Right?
Many commercial insurance providers offer a so-called business owner policy (BOP), a package containing the basic coverage needed, all in one bundle. Is it the right combination of coverage for your business? Are there gaps or unnecessary coverage? Take some time to understand the fine print before you commit, or get the advice of an insurance agent specializing in business insurance.
Get Advice from an Expert
Business insurance can smooth the bumps in the road limiting the effects of an accident or event into nothing more than a hiccup rather than a major catastrophe. You may be tempted to cut costs by cancelling some of your optional insurance coverage. However, the better bet is to call an insurance agency. An insurance broker will have the knowledge to help you understand what insurance coverage you absolutely need, and what you should have. Insurance agents can shop around to get you a package that is specific to your business and is the most cost-effective. Rather than taking chances by eliminating the cost of business insurance, talk to an expert to clarify what you need, then find a policy that can deliver everything within your budget.
