Accidents and other unforeseen circumstances are events that nobody wishes for; unfortunately, just because you don’t wish for them doesn’t mean they won’t happen. One can wake up to the news of a fire outbreak or a burglary attack on your business premises. This is why getting business insurance is a must-have for all businesses. Although business insurance could be quite expensive, its benefits usually far outweigh the cost in the long run. It protects businesses from unprecedented risks, irrespective of the size and make-up of a business.
What is the Cost of Business Insurance?
The amount you will need to pay for your business insurance is largely dependent on the number of plans you are subscribing for.
For a one-man business, having just property and liability insurance could be fine. However, for a business with employees, the state could require that other coverages such as worker’s compensation, disability insurance, and unemployment insurance are purchased. For a landscaping industry, landscaping business insurance covers all the needed coverage for the company. The total cost of business insurance depends on the business size, the number of workers, and the properties you own. This could range from a thousand dollars to 20 thousand dollars.
How to Reduce the Cost of Your Business Insurance With Fewer Liability Claims
Your company’s insurance cost can take up a great percentage of your company’s expenses. Thankfully, there are ways you can reduce this cost. The following tips could help you reduce your business insurance cost.
Slip and Fall Claims
One of the most common liability claims most businesses pay for is a slip and fall claim. So if you observe that the number of people slipping and falling on your business premises is high, it is important to find out the cause. It could be a result of poor mopping skills or other infrastructural defects. You should address this issue and fix the problems as soon as you can. You could also put wet floor signs in case of a wet floor to help avoid slipping. This will help minimize the liability risks and save you some money.
For food businesses, focusing on training and improved safety measures can help cut the cost of business insurance. If customers regularly get sick because of your food, this will surely increase the cost of your business insurance. To prevent this from happening, you must ensure to carry out regular inspections to find out the risk areas to work on. Getting sick after consuming your food can also damage your reputation, so you must do everything to prevent it from happening.
Defective Product Claims
Anyone running a production business knows that it is almost impossible to distribute wholesale goods without defective products. However, proper training can help reduce the number of defective goods sent out. Improving the quality assurance process could help reduce your defective product claims.
Other ways to reduce your business insurance cost include:
Ask for Discounts
Asking your insurance provider for available discounts or how to qualify for a discount is one way to reduce your business insurance cost. Your business could be qualified for a discount based on the nature of the business or even the business size. You could also qualify for a safety discount whenever there is a new security installation or upgrade for your business or a loyalty discount if you’ve been with your provider for a time frame.
Pay in Advance
It is easier to get discounts when you pay in advance because most insurance providers offer discounts for early payment. The discounts are even better and more assured when you pay for longer duration plans like 6 or 12 months.
Although the cost for purchasing long-duration plans might be a large lump sum, however, when broken down, you will realize that you’ve saved a lot during the year. If you do not have the financial strength to purchase such plans in the current year, you can choose to save towards it monthly for the next year.
Stop All Unnecessary Coverage
As a business owner, you need to be smart when it comes to your expenses. For example, paying for car insurance when you don’t own a corporate car is not a smart move. To avoid paying for any unnecessary business insurance plan, you should try and make a list of all the insurance coverage you are currently paying for. After which, you must critically analyze your business needs and carefully review each insurance policy and check for benefit duplication. This will help you eliminate all unnecessary coverage and save costs.
Search for Package Deals
Getting packaged deals can save you a lot in terms of business insurance costs. For example, the Business Owner Policy package packs both property and liability insurance as a single policy. This policy also provides your business with bonuses like business interruption insurance.
Typically, a bundled Business Owner Policy is always cheaper than individual policies.