As a business owner, it’s not only your responsibility to ensure your company is generating income but also that you’re receiving the most in return for your spending. That’s why it’s important to review your business insurance to make sure you’re not overspending on excessive or minimal coverage. To determine whether you’re enrolled in the best policies for your needs, let’s review some tips for controlling your small business insurance costs.
Bundle Your Small Business Insurance to Reduce Costs
If you own multiple policies through different insurance carriers, you may be missing out on savings opportunities. Instead of purchasing your general liability insurance through one provider and cyber insurance through another, see about finding a carrier that offers both these policies and more. By bundling your business coverage into a single policy, you can potentially reduce your total premium costs and even make your insurance renewal process quicker and easier.
Reconfigure Your Insurance Deductibles
The more you elect to pay for your deductible, the lower your monthly premium may be. By saving a little each month, you will be left with more money to invest in your business. However, before selecting a higher deductible, you have to ensure you have the funds available to pay out of pocket for a covered claim should you need to repair or replace the contents of your business.
Review Small Business Coverages Annually with Your Insurance Agent
As your business needs change, you should review your small business insurance with your independent insurance agent. You may discover that you need to adjust some existing coverages or that additional protection is required. Your agent should be made aware when you’ve experienced a reduction or increase in staff, if you intend to move locations, or if you’ve added new equipment or product offerings to your operations, as this will influence the coverage your business requires. This is crucial, as you may incur a fine if you have insufficient policy limits for your business.
Strengthen Your Business’s Risk Management
Being financially responsible for your business oftentimes requires planning for the worst. For example, if your company is the victim of a data breach, and you don’t have the appropriate cyber coverage, you’re fully responsible for the costs related to your company’s recovery – including legal fees and any fines levied by the state. However, while owning the proper policies can keep your business safe, implementing the appropriate measures can decrease risks and save you money in the long run:
- Natural Disasters: It’s essential to have a plan in place so your business can quickly recover after a destructive storm. While insurance will help pay for the damages, having a task force to handle these disasters can help you open your doors sooner or even keep them open.
- Business Succession: When you retire, you want to leave your business in good hands. Working on your transition plan now will help mitigate any business interruptions in the future.
- Data Breaches: Don’t wait until it’s too late to prepare for a data assault; make sure your servers are secure, protection software is up to date, and staff members are properly trained on cybersecurity.
These risk management techniques can help you avoid an expensive deductible. Even if your measures fall short, you may mitigate some of the damages, possibly resulting in minimal or no increase to your insurance premiums.
Controlling your small business insurance costs isn’t just about freeing up funds to build your business; it’s also about ensuring you’re properly protected from unforeseen circumstances. As your business evolves, so too should your coverage. That’s why it’s important you entrust your insurance decisions to an agency such as TJ Woods Insurance, which has a wealth of experience working with business owner’s policies. If you want to ensure your small business can endure whatever disasters are thrown at it, contact us today.
