When you run your own business, you have lots of responsibilities to juggle, and you need to make sure you’re as prepared as possible for all eventualities. Insurance plays a big role in mitigating risks and helping to protect your business.
That said, just because getting the right insurance is important, it doesn’t mean you need to pay over the odds to be protected. The good news is, there are plenty of ways that you can save money on insurance policies whilst keeping your business safe – and we’re here to help you do this.
Below, we’ve pulled together a helpful guide for saving money on your business insurance this year.
The different types of business insurance
Before we begin sharing our money-saving tips, it’s important to briefly touch on the different types of business insurance we are referring to throughout this guide.
As there is no ‘one size fits all’ policy, it is possible that you’ll need to get multiple policies to protect your most important assets.
In order to avoid loss, damage, lawsuits or any other catastrophic event that could harm your business, it’s important to consider:
- Liability insurance to protect against negligence claims
- Property insurance to protect buildings, equipment, signage, inventory and furniture
- Workers’ compensation insurance to support employees
- Product liability insurance to protect against lawsuits as a result of your products
- Vehicle insurance for any company vehicles such as delivery vans
- Business advice interruption insurance to protect against a disaster or catastrophic event
You will need to think about which insurance policies are going to be crucial for your business based on where you work from, what you do, your goods or services and how many employees you have (if any).
Tips for saving money on your business insurance
No matter which types of insurance you need for your business, there are similar steps you can take to help you cut costs. So, for maximum protection without paying too much, here is how to find the right insurance policies for you:
Make sure you shop around
One of the most important things you can do when looking to save money is to make sure you shop around and weigh up all your options. There was a time when this might have been a time-consuming task, but thanks to the power of the internet, you can now compare quotes in a matter of minutes.
One of the easiest ways to shop around is to use a comparison site that pulls together the relevant quotes for you. You can also use the internet to explore different insurance providers and approach them directly to see what they can do for you.
You can then compare any prices you’ve been given, taking into account coverage and other benefits as well as the price.
Work with an insurance broker
Following on from this, another way to find the best possible insurance without having to put the work in yourself is to use an insurance broker. These are professionals who help you to find a policy that best suits your needs and budget.
As these insurance brokers are typically paid a commission by the insurance companies they are selling for. This means you don’t pay them a fee for doing the research and finding you a good deal. So, as well as having someone help you shop around, you can also make the most of their expertise without paying any additional fees. It’s a win-win!
Don’t focus solely on price
It might sound counterintuitive telling you not to focus on price alone when you’re looking to save money on your business insurance, but hear us out. Sometimes there is a reason why a policy is so cheap, and that’s because it doesn’t really offer much protection for your business, which could cost you more money down the line should something go wrong and you need to make a claim.
So, the best way to look at saving money on your insurance is not just to focus on initial cost but to focus on value for money.
This is where your research comes in, whether you do this yourself or outsource this to an insurance broker. It gives you the chance to find the policy that best suits your business whilst keeping within your budget.
Because ultimately, a stronger, better policy might cost more initially, but it can save you a huge amount of money and effort if you need to make a claim.
Consider higher deductibles
The deductibles, often referred to as the excess, on your policy is what you pay before the insurance provider pays out. Often, choosing a higher deductible means that you will pay less for your policy in the first instance.
However, you should only choose a policy with higher deductibles if you can afford to make the excess payment in the case of a claim.
Choose a package policy
If you have multiple policies that you need to purchase for your business, you could consider choosing a package policy. This can often be a cheaper option, allowing you to save money, as well as keeping things simple by having all your policies with one provider.
If you’ve chosen a provider in particular or if you’re working with a broker, find out what the options are for package policies. They will be able to advise on the most budget-friendly options.
Regularly review your policies
Finally, another important way to save yourself money on your business insurance is to make sure you regularly review your policies. Don’t fall into the trap of letting these auto-renew each year without checking them over.
Some insurance providers will increase their policies on an annual basis, and though they will inform you before, it’s easy to breeze past these letters and emails or ignore them altogether when you’re a busy business owner.
By regularly reviewing your policies, you can ensure your business is still covered for all the important aspects and that you’re still getting a good price. You might find that if your policies are rising too steeply, you want to switch to another provider to help you save even more money.
Some companies will even offer discounts or other incentives in order to get you to switch from your existing provider over to their company.