Starting a business is already very costly and the last thing you need is expensive insurance. You want to do everything you can to save money while still protecting your business. When buying insurance for your small business, there are a few things you can do to lower your premium.
Increase Your Deductible
One way to get a cheaper premium is to increase your deductible. This way you can keep your regular payments low and you only need to pay a larger amount if there is an accident or incident. This practice is particularly helpful if you feel your business is low risk. If you expect fewer incidents, then a high deductible every once in a while will not be as much of a burden. However, make sure your deductible is not so high that you wouldn’t be able to pay it. Keep it at a price you are comfortable paying.
Practice Risk Management
There will always be risk in business, but there are measures you can take to reduce risk. One practice is to hire employees who are certified in your area of business. Employees with professional certifications are less likely to expose you to lawsuits. You can also depend on quality work from them. Make sure your employees are aware of all regulations in the workplace. One way to do this is to put your regulations in writing. Have employees sign them and/or have them readily available to read. Keep clear and accurate records. If a lawsuit comes up, you can use your records to help support your case. In general, use ethical and moral business practices. If you run a good business, you are less likely to face lawsuits.
If you bundle your policies, many insurance companies will give you a discount. It’s likely that your business will need multiple policies anyway. You’ll need general liability insurance, you need to insure your workspace, your employees, etc. By bundling you can also receive more coverage. You insure multiple areas, but your premium is kept lower. Usually, if you add a form of insurance without bundling, it adds to your premium. Save yourself some money and bundle your policies.
To help get your small business off the ground, it’s helpful to start by saving some money. Evaluate your business to see how you can adjust your premium. Do you feel safe enough to raise your deductible? Are you confident in your ability to lower risk in your business? See what will work for you and you can save money on your insurance premium.
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