More than half a million small businesses launch every month in the US.
Experienced entrepreneurs and those with business education run quite a few of them. Many people without that experience launch a business because a hobby turns profitable or they get an ah-ha moment.
For this second group, they often discover things the hard way. They might only find out they need a business license when they get a nasty letter from a local official.
That inexperience can also translate into spending more than necessary on essentials. They might end up budgeting more insurance money each month because they don’t know the ropes.
Sound like you? Well keep reading and we’ll show three ways you can save your insurance money.
1. Figure Out What You Need
Most people planning a new business run across the term general liability insurance. That’s insurance that covers a customer’s property damage. Depending on the policy, it will often protect you from losses from libel or slander.
Let’s say you run a custom cabinet business that also does installations. During an installation, one of your crew damages the customer’s kitchen stove. General liability insurance will typically cover the cost of repair or replacement.
Yet, for many new businesses, a business owner policy is the better move. A BOP covers several major areas of concern, including:
- Liability coverage
- Business interruption coverage
- Business property coverage
You should also make note of the coverage you don’t need. A solopreneur without any employees doesn’t need workers comp.
2. Look at the Payment Fine Print
Did you know it actually costs businesses a lot more to process a check? That’s as true for insurance companies as it is for your business.
Take a close look at the payment options when you sign up for your policies. Some insurance companies will knock something off the top if you make electronic payments. Some will do the same if you pay in advance.
Don’t assume monthly payments are your best option until you crunch all the numbers. The caveat here is that you shouldn’t take an option that jeopardizes your financial health now to save a few bucks down the road.
3. Look for Discount Opportunities
Insurance companies will often give you discounts if you do certain things or meet certain criteria.
You can often get lower rates if you buy several of your business insurance from the same company. For example, you could buy a BOP policy and tack on a workers comp and business auto policy.
Some companies will drop your rates if you make safety and security improvements at your business location. Always ask your insurer if they offer these discounts.
If you’re a member of a professional organization, it often qualifies you for discounted rates on your policies.
Parting Thoughts on Saving Insurance Money
You have several options for saving your insurance money.
Figure out what insurance coverage you need, then look for the options that offer that coverage at the best price. Don’t rush into a payment option with crunching the numbers. Take advantage of the discount opportunities your company offers.
Amistad Insurance offers several kinds of business insurance, including BOP, general liability, and workers comp. To learn more about our policies, contact us today.