All small business owners understand the importance of carefully budgeting expenses. But while paying rent, utilities and payroll is necessary, so too is business insurance. A storm or a liability lawsuit could result in your business facing tens or hundreds of thousands in damages. Paying a monthly premium is well worth it if it spares you an extraordinarily high—and unexpected—bill. 
However, just because you recognize the value of business insurance, doesn’t mean you need to spend a fortune on coverage. In fact, many insurance providers offer a variety of discount options for qualifying businesses. Here are three of the most common ways to reduce your business insurance premiums.
- Raise the deductible: The deductible is the amount you’re responsible for paying when making a claim, after which the insurer pays the rest of the claim (up to policy limits). When your deductible is raised, your monthly premium is reduced. While paying a higher deductible may not sound ideal, look at it a different way. It’s a sure thing that you have to pay a monthly premium, while the chance of filing a claim is often slim. Paying less each month allows your business to trim expenses and save more, which can help fund a deductible later on if the need arises.
- Bundle your coverage: Unless your business qualifies for a business owner’s policy, or BOP (which is a single policy containing various coverages), you will need to buy separate policies to acquire the coverage you desire. Bundling all these coverages together with one insurance provider often leads to savings across the board. Think of it as a reward for giving your insurer more business.
- Beef up security: The safer your business, the less likely it is that you’ll need to file a claim. This means that more secure businesses pose less of a financial risk to insurance providers. In fact, installing new security features—like fire sprinklers or an alarm system—may qualify your business for a safety discount.
Every insurance provider offers discount options. Your independent insurance agent can help you figure out which discounts your business may be eligible for.
Find out how much you can save today. Call Mitchell Insurance Services for more information on business insurance.