5 Ways To Save Money On Business Insurance

Insurance is a business expense that is often overlooked. While it may not always be mandatory, most businesses can benefit from having some form of insurance in place – whether it’s protecting you against theft of property or the injury of others.

Insurance could potentially save you a lot of money in the future. However, this is no reason to pay expensive rates for it – particularly as there is a chance you may never need it. To help you save money on business insurance, here are just several measures that you can take.

Reduce the risk

Insurance rates are largely calculated on how much of a risk you pose of filing a claim. By reducing the risk, you can gain access to lower rates.

In the case of employer’s liability insurance, which can help to pay compensation to any employees injured or made sick as a result of work, you may be able to lower the risk by introducing pre-employment medical assessments to prevent hiring employees more prone to injury or sickness. Investing in certain safety equipment and making certain safety improvements to your workplace could also reduce the risk.

Shop around

Every insurer is likely to offer different rates, so it’s worth taking the time to shop around rather than automatically renewing your current policy.

There are insurance comparison sites that you can use to shop around for the cheapest rates. You may be able to lower rates further by phoning insurers up directly and asking for their cheapest quote. Some insurers may even be willing to price match.  

Bundle your insurance

You can sometimes save money on insurance by bundling various schemes together. Some insurers offer specialist business insurance bundles that may include property insurance, employer’s liability insurance and public liability insurance – together these schemes are likely to cost less than if you were to take them out individually.

Some bundle deals may be advertised, while others may only be accessible by ringing up an insurer and discussing options.

Up your deductible

The deductible is the amount that you’re willing to pay out of your own pocket before claiming compensation. Opting for a high deductible often results in cheaper rates. Just be wary of the fact that you’ll pay more when you do need to make a claim – if you think there’s a high risk that you may need to make a claim in the future, a high deductible may not be worthwhile.

Use a broker

Finding a great deal on business insurance isn’t always easy. For this reason, some people hire an insurance broker to do it for them. If you’re in a high-risk trade, hiring the help of a broker could be particularly useful for helping you to find insurers that you’re not automatically rejected from. Some brokers may even have access to exclusive deals not found on the market as a result of special relationships with insurers. 

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