Bet Your Life: The Basics Of Life Insurance

Cutting Costs On Your Business Insurance

Business insurance can take up a big chunk of any business' earnings. You might be wondering how you can get business insurance that's adequate but also affordable. Here are some strategies for evaluating insurance premiums for your business.

Evaluating Types of Insurance

First of all, make sure that you have the types of insurance coverage you need-- and no more. This may require you to consult a business insurance broker to see what's common for businesses in your industry. Liability insurance and commercial property insurance are common to most businesses, but things like fleet insurance or business interruption insurance may also be helpful. Once you have a lineup of insurance types, try to bundle them together to save the most money.

Evaluating Overlaps

There are often overlaps in any insurance policy, and these are areas that you can target to reduce your premiums. Take, for example, a commercial property insurance policy that includes liability insurance. It might cover some of the same accidents and scenarios that are covered by your general liability policy. If you reduce your coverage in each policy so that they don't overlap too much, it will save you money, and you're not losing much protection for your business. Thus, it pays to read the fine print to figure out where your policies overlap.

Evaluating Coverage Levels

Another thing that's tricky to get right is your coverage levels for each type of insurance. At first, you might start out with the amount of property or fleet insurance that your insurance provider recommends. But over time, it pays to tailor these policies to your actual business needs. For example, vehicle use may not be a central part of your business, and so you are not as likely to have insurance losses in this department as you are in another more active business endeavor.

Sometimes it's worthwhile to pay a risk assessor to look at your business and point out its weaknesses from an insurance perspective. You could also look at your own past data to see which insurance types are taking a hit and which are not.

A Final Caveat

While saving money is great, you probably don't want to reduce your insurance premiums down too far; then you won't have adequate coverage to protect against the real risks that any business takes. It may take some careful planning and consultation with specialists to find the sweet spot where you're getting a great deal and keeping your business out of harm's way.


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