As a business owner, you wouldn’t survive long without the protection afforded by business insurance. It insulates you from a wide range of financial losses, such as a customer suing you, employee theft, and widespread damage to your business structure caused by severe weather. These situations are unpredictable and out of your control. However, that doesn’t mean you must spend a lot of money to get the insurance coverage your business needs. The tips below will help you save on your insurance bill while still giving you valuable peace of mind.

Improve Security

Any security upgrade reduces the likelihood of loss and having to make a business insurance claim. Even so, knowing what to add, change, or eliminate isn’t always easy. You may wish to consider a professional security evaluation to help you make the best decisions. If you go this route, save the written recommendations from the security company so you can show your insurance provider how you have improved security. This should qualify you for certain discounts.

Document Everything

Documenting everything is the best way to make your case to an insurance agent that your business is low risk. This includes such things as items purchased, new procedures implemented, and your business plan that strategically outlines how you plan to increase profit. Without legitimate proof that you should be in a lower risk category, your agent may have no choice but to assign you to a higher one.

Value Your Business Assets Appropriately

Since insuring newer assets costs more than insuring older ones, be certain to update individual values on your business assets each year. Hiring a professional appraiser for high-ticket items is the best way to make sure that you have adequate coverage for it. When you dispose of an item or sell it, be certain to let your agent know that you don’t need coverage for it anymore. You might be surprised at how many business owners forget to do this and end up paying more in premiums than necessary.

Implement a Safety Program for Your Employees

Requiring your employees to complete mandatory annual safety training shows that you’re serious about reducing your risk to the insurance company. Possible topics can include best practices for avoiding on-the-job accidents and how to stop the spread of contagious illnesses at work.

Audit Your Policy Once a Year

Business needs change, and it’s up to you to be proactive about your insurance coverage. On the same day every year, go through your policy and make sure that you’re not paying for things you don’t need and that you’re getting the best deal on things you do need. Your agent should be willing to help you with this audit if necessary.

You’re in business to make money, not spend any more than you have to. In addition to these tips, be sure to compare insurance company policies every few years and let your current carrier know if you find a better deal.

 

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