This economy has been tough on many businesses, particularly small ones that don’t generate as much income as larger companies. However, insurance is still an important consideration for every business. Think about the costs of rebuilding after a fire or the losses incurred after an overnight theft. These expenses can quickly exceed the cost of insurance, and can even mean closing business doors in extreme cases. Rather than getting rid of valuable coverage, try these three tips for saving on insurance premiums.
- Bundle your policies: Insurance companies want more business from customers, and bundling all of your policies with a single insurer is giving that company what it wants. This often means discounts across the board on your policies. Another bundling option for small businesses is called a business owner’s policy (BOP), which is a single policy that includes property and liability coverage, along with additional coverages of your choice. This option is often a cheaper way to get comprehensive coverage for businesses that employ fewer than 100 employees and earn less than $1 million annually.
- Pick a higher deductible: A deductible is the expense a covered business is responsible for paying when filing a claim; the insurer will cover the rest of the costs following a covered event (up to policy limits). Choosing a higher deductible will often decrease monthly premiums, but it also means that your business will have to pay a higher amount when making a claim. It’s recommended that you pick the highest amount that your business can feasibly afford at any given time so you can enjoy lower premiums year-round.
- Install security features: Insurance companies calculate premiums by how much of a potential risk a business poses. You can reduce the risk of a covered event occurring on business property by installing security features, such as burglar alarms, security cameras, smoke alarms, fire sprinklers, a stronger firewall on computers, etc. These devices will require an initial investment, but they help make your business much more secure. This added security can reduce your premiums and/or qualify your business for a safety discount.
Learn how you can save on comprehensive coverage today. Call JSW Insurance at (925) 737-1560 for more information on Bay Area business insurance.