Top 4 Insurance Tips for New Businesses: These quick tips can help protect your business and manage cost.
It is overwhelming to open a new business, especially if you are on your first. It is easy to stress over all of the red tape, finding the right location, hiring employees and managing expenses. It isn’t all bad either though; sure, the anxiety may be present but there is a lot of excitement too. Looking forward to the future, realizing your dream, and achieving your goals are all worthy aspirations. But, just like buying a new car, no one ever thinks of insurance until after the fact. Business insurance is too important to neglect so why regard it as an afterthought? Below are four tips to keep in mind when shopping for your new business policy.
1. Manage Costs by bundling insurance policies
Business Owner Policies are a great way for business owners to get the coverage they need without breaking the bank. Most insurance carriers offer bundling discounts for bundling business auto with general liability and workers compensation. The total premium may be less for a business owners policy compared to individual policies.
2. Consider your deductible options
Raising deductibles is a great way to save on insurance. Consider higher deductibles for cheaper premiums. This will allow you to invest money in other areas of your business. However, your deductible is the out of pocket expense before insurance will pay out. Ask yourself “how much money do I have and how easy is it to meet our deductibles” before raising them.
3. Review your coverages annually
Meet with your insurance agent at each renewal. Take the opportunity to review your coverages and make changes as necessary. You may even find it necessary to purchase additional coverage. Have you lost or gained new employees? Have you purchased or sold new equipment? Have you launched a new product line? These are just a few things that can affect your business policy and it is important it stays up to date.
4. Implement risk management
Consider adopting a risk management strategy to minimize exposure. A comprehensive risk management program will address every risk associated with your business. Generally, insurance carriers discount premiums up to 25% for companies with an active risk management program. If this is the first you have heard of this then call your agent and review it with them.
