Managing business insurance costs is one of the many responsibilities you are likely juggling if you own a small business. It’s a good idea to periodically review your business insurance policy to make sure you have the right amount of protection for your company and are getting the most for your money.
While keeping your bank account in mind, here are some factors to consider as you make decisions about your business insurance policy:
Reduce costs by bundling insurance coverages
Some business owners may have multiple policies with different insurance companies. For example, a business might purchase general liability coverage from one insurer and data compromise coverage from another. By bundling all your business coverages into one policy, you may be able to reduce your total premium costs — the amount you pay an insurer to keep the policy active.
As an added bonus, having only one business insurance policy can make managing your insurance renewals a little less time-consuming.
Re-evaluate your deductibles
A deductible is the amount of money you pay out of pocket toward a covered claim. Increasing the deductible on your business insurance policy may reduce the cost of your premium. You could then consider putting the money you saved back into your business each month. However, before choosing a higher deductible, consider how much money you’d have available to pay out of pocket to repair your business or replace its contents after a covered claim, like theft or a fire.
Review Your Coverages Annually
Business needs can change rapidly. It’s a good idea to review your policy with your insurance provider on a regular basis to help ensure you have the appropriate coverage for your business. You may find that you can adjust some existing coverages or that you need to purchase additional protection if, for example, you have added equipment or increased your inventory.
It’s also important to note that having insufficient policy limits may result in a penalty. This is a fine you’d need to pay for not purchasing enough insurance.
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