How to Reduce Your Business Insurance Premiums

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How do you get cheaper business insurance? If you own a car, you’ll renew your insurance every year and shop around for cheaper quotes. The same applies to your house insurance. You probably know that there are certain measures you can take to reduce your renewal quote for these types of insurance – becoming part of a neighborhood watch scheme; parking in a locked garage overnight; increasing your excess and so on.

But how do you get a cheaper quote for your business insurance?

You need business insurance whether your business is a large limited company or if you are running a small or home-based business. The latter types of business are often more important to insure because if you’re not a limited company, then any liability you have is personal – and any money that you had to pay out to settle a claim would come from your personal assets (which might include your home). Yet these businesses are often the ones that can least afford to spend lots of money on insurance premiums.

Inflation and an increased number of claims has pushed premiums up over the last few years. Using internet search and comparison sites is perhaps the quickest and most convenient way to search for the cheapest quote for your business insurance. Through these sites you should be able to identify the factors that affect the premium rates, and see if there is any way for you to adjust your business arrangements to make those variables more favorable. Here are some good tips to get you started:

You might be able to make your insurance cheaper, for example, by doing things that you would do to improve a home insurance quote: things like installing fire alarms, smoke detectors, burglar alarms and so on.

If you belong to a professional organization, check whether they recommend a particular insurer. There might be a reciprocal arrangement in place for members of that organization to use that insurer on the basis that preferential rates will be offered. Having said that, it is always worth shopping around, comparing quotes between companies.

If you need several types of insurance (e.g. professional indemnity, employers’ liability etc.) then check whether it is cheaper for you to buy them as a bundle of policies (as a discount might be offered) or to buy them separately, perhaps from different insurers. If you do buy them separately, make sure you keep careful note of which insurers provide which type of insurance, and keep a careful record of renewal dates.

Do you have business insurance? Are you making an effort to keep the premiums low?

Money

AUTHOR Derek

My name is Derek, and I have my Bachelors Degree in Finance from Grand Valley State University. After graduation, I was not able to find a job that fully utilized my degree, but I still had a passion for Finance! So, I decided to focus my passion in the stock market. I studied Cash Flows, Balance Sheets, and Income Statements, put some money into the market and saw a good return on my investment. As satisfying as this was, I still felt that something was missing. I have a passion for Finance, but I also have a passion for people. If you have a willingness to learn, I will continue to teach.

4 Comments

  1. For small business like what we have, keeping the expenses down is very vital. This post has been very useful. Thanks much.

    I have also learned that it’s important to identify the risks inline with your business. Eliminating these risks can decrease premium calculations.

    Best regards,
    Belinda

  2. Business insurance can be a complex subject, with many internal variables that need to be examined before a wise decision can be made. For this reason, anyone considering business insurance should first seek the advice of a reputable broker or agent. This article will detail a few of the many variables that business insurance may contain.

  3. awesome post…..as its provides some suggestion about how to reduce your business insurance premiums….. i like this post…

    • Glad you liked it Linda! Come visit us again soon! 🙂


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