Keeping Costs Down – Business Insurance

Below you will find several suggestions for keeping your insurance costs down.

Shop around
Shopping your insurance may save you significant numbers of premium dollars. Why? because many companies specialize in specific types of business owner’s coverage, and, therefore, offer lower premiums for those particular coverage options than you would pay for the same coverage with a different company. Shopping your insurance gives you the opportunity to locate such companies.

As you shop, consider saving yourself both time and money by calling an independent agent, like those at Hartley Insurance, who can often obtain multiple business insurance quotes for you from a variety of reputable companies. In addition, use care when comparing policy premiums to make sure that you are comparing like premiums for like coverage and coverage limits.
Finally, keep in mind that there is a down side to shopping your insurance. Changing your insurance frequently may cost you the loyalty of your agent; like your time, your agent’s time is limited. So, he or she is most likely to devote his or her best efforts to loyal clients. In addition, changing insurance companies frequently will likely cause you to forfeit discounts and perks that many companies offer to their long-term clients only.

Obtain available discounts or credit
Ask your agent for applicable discounts, such as policies that allow you to combine many types of coverage into one “package policy”. Ask about the availability of credits to businesses that have a long history of quality management and minimal losses. Additionally, consider paying your business insurance annually to save the cost of billing fees or finance charges.Increase your deductibles. Increasing your deductibles from $250 to $1000, or even $5000, can save you a substantial number of premium dollars. Of course, higher deductibles also mean higher out-of-pocket expenses at claim time, too. So, consider whether or not you are financially positioned to absorb higher up front costs before raising your deductibles.

Drop some coverage
Most business owners are natural gamblers. While dropping some insurance coverage may help your cash flow it could literally destroy your business if you experience a serious loss without the proper insurance in place.

Listen to the insurance company and your agent
Because both your agent and your insurance company have a vested interest in helping you prevent losses, they may be prepared to offer you practical suggestion for reducing your exposure to certain risks. Following their advice can save you not only significant frustration, but premium dollars as well.

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