Business insurance is a must-have for just about every company, regardless of size. The fact is, though, that there is a huge range when it comes to the costs of premiums for the various business policies available. So, while you want to make sure you’re fully protected, you also don’t want to be paying more than you need to.
THE RIGHT LEVELS
There are several reasons why you might be paying too much for your business insurance coverage. One is that your deductibles and coverage limits are simply set inappropriately. Very low deductibles might sound appealing, but they generally result in higher premiums. Of course, deductibles that are too high may lower your premiums, but that initial savings can easily be erased by the amount you have to pay out of pocket for each claim.
In cases like this, finding the right balance between savings and security will ultimately get you the best deal, and that means taking a careful look at your actual risk levels as well as your company’s overall finances. The same is true for setting coverage levels, as higher caps will cost more in premiums. However, if the wrong revenue figure is being used to calculate your caps, they can easily be set too high, causing you to pay for and carry coverage that you’ll never use.
THE RIGHT CARRIER
Not all insurance companies are able to offer the range of policies any given company needs, and that’s particularly true when it comes to small businesses. With that in mind, it’s a good idea to see what types of coverages are available from different carriers to see which one is the best fit for your particular situation.
That might mean going with a larger carrier that offers a more diverse range of options, or it might mean going with a carrier that specializes in your specific industry. Along these same lines, you can also save money by bundling your policies whenever possible, and that pursuit may dictate the right choice in carriers for your company as well.
Even if you feel like you’ve put together a comprehensive package of business insurance coverages at a good price, don’t allow yourself to simply renew every year without reevaluating your situation and the business insurance marketplace. Dynamics change all the time in the insurance industry, and advances in technology have only accentuated that trend. So, taking some time every year to make sure your coverages are still appropriate and that there are no better deals out there is a sound investment in the financial well-being of your company for the long term.
If you’d like to learn more about the comprehensive packages of business insurance policies we offer, contact our offices today.