6 Ways You Can Save Money on Business Insurance

Budget cutting continues to be common for businesses getting squeezed by inflation. The best way to save money on business insurance is to hire drivers with clean driving records and keep claims to a minimum. Here are six additional ways a business can cut insurance bills.

1. Know What Insurance Coverages You Need
   

   When you understand the different types of coverage available, you'll avoid wasting money on coverages you don't need.

   Common types of business insurance coverage include the following:

   • Business Owner Policy - BOP is a common insurance plan for small businesses that simplify insurance. It combines general liability with commercial property coverage.
   • General Liability Insurance - GL is designed to protect your business from injuries to third parties on your property or due to your products. It pays for the legal costs of various lawsuits, such as those involving defamation and infringement.
   • Workers Compensation - Workers comp pays the hospital bills when employees suffer an accident on the job. It further pays a percentage of the employee's lost wages.
   • Commercial Property Insurance - This coverage protects the establishment where you conduct your business. It pays for losses from natural disasters, theft, and vandalism.  It can also cover loss of Business Income if you are shut down for an extended period of time.
   • Errors & Omissions Insurance - Also known as Professional Liability Insurance, this coverage protects your staff in case they give advice that leads to a loss for a client.
   • Data Breach Insurance - A cyberattack can result in data loss, software damage, and identity theft. Without this coverage, losses can be significant and difficult to recover.
   • Commercial Auto Insurance - State laws require all business vehicle owners to meet minimum liability insurance limits. If you or your employees use rented or personal vehicles for work, consider extending your policy with hired and non-owner auto coverage.
2. Raise Your Deductible
   

   Another way to save money on monthly insurance costs is to raise your deductible. You'll pay a higher amount when you file a claim, but if you keep claims to a minimum, this strategy creates savings over time.

3. Bundle to Save on Insurance
   

   Ask your insurance agent if you can get all the coverage you need to be bundled under one plan at a lower cost. A bundled plan, for example, may include general liability, commercial property, and commercial auto plans.

4. Maintain a Good Credit History
   

   Good credit goes a long way for business owners because it affects the amount of money they can borrow. By maintaining a good credit score, you present a lower risk for the insurer than individuals with low credit scores.

5. Drive Safely
   

   Safe driving is a major key to avoiding accidents and traffic violations. That's why insurance companies factor in your driving history. The more evidence you can show your insurer you hire low-risk drivers, the better chance of a lower premium.

6. Evaluate your business
   

   Finally, you can lower your business insurance rates by evaluating your business each year for changes that lower risks. Reducing the number of drivers or vehicles can help bring costs down.

Protect Your Enterprise with Proper Coverage from Tompkins Insurance Agencies

Your business insurance should be based on specific risks affecting your industry and operation. Contact our team at Tompkins Insurance Agencies for more information on options for saving money on business insurance.