When it comes to running your business, you probably try and focus most of your energy on a few key things. Those might be making money or looking for ways to grow your business, but it might also just be enjoying your duties.
The best entrepreneurs often have a genuine passion for whatever it is that they do that makes money. Thinking about business insurance isn’t as much fun, but it’s also necessary. However, since you want to save as much money as you can, it’s useful to do anything you can that makes business insurance more affordable.
5 Hacks You Can Use for More Affordable Small Business Insurance
There are many steps you can take towards more affordable small business insurance. Starting with just a handful makes your work easier.
Shop Around: This works just as well for small business insurance as it does for your own personal insurance. Get quotes from multiple carriers, or just have independent agents look around for you. This works really well if they specialize in the kind of insurance that your organization needs.
Bundle Policies: You can get a business owner’s policy, or BOP, that bundles various commercial policies. It might include commercial property insurance and general liability for lower together than you would pay for the two separately. Not every policy is a good bundle option, however, especially for complex exposures.
Classify Your Workers Properly: Accurate classification of workers is crucial for workers’ compensation insurance. These numeric classification codes categorize your workers and are used in setting insurance rates.
Annual Reviews and Updates: Whenever you renew, revisit the policies, too. New policies need to reflect changes of the previous year, including changes to exposures, payroll, geographic market, business size, and business model.
Practice Proactivity: Use common sense when protecting your business. Employees should have safety manuals. Put password protection on electronic devices and your Wi-Fi network. Make sure you install alarms and fire suppression systems. Do anything you can to prevent or minimize your risk of exposure to certain events. Fewer claims usually mean lower rates, and you might just get some premium discounts along the way.
Delegate This
If you’re an effective business leader, then you know what core responsibilities you need to handle yourself and what you can delegate to others in your business. Have you considered the possibility of delegating certain tasks to professionals outside your organization? You can look for the best small business insurance yourself, but you can also let industry professionals do a lot of the work for you. They can objectively ascertain what your organizational insurance needs are, look up the options, and then present you with viable options that fit your business needs and budget.
What Small Business Insurance Might Not Cover
Comprehensive small business insurance or the right umbrella of bundled policies will cover quite a few risks that your organization might face. However, as Forbes.com indicates, there might be certain things that it won’t cover.
One of them is flood damage that happens to your business. You’re usually going to need a distinct commercial flood policy to handle any potential flooding matters. Even if you’re not in an area prone to flooding from creeks or rivers rising up, flooding might still happen due to storms and hurricanes at any elevation.
Other matters that might not be covered included intentional acts, fraudulent acts, and wrongful termination. At least with the last one, you might be able to get an employment practices liability policy.
It might be tempting at times to think about skimping on your insurance or even just skipping it in order to save money, but you’ll be doing a lot of people a disservice if you do that. Clients could wind up being at risk, as can your employees. Anyone who has invested in your business or owns part of it would also be at risk of potentially significant loss.
Even if nothing happens while you’re underinsured or just not insured, you might face steep fines and penalties from various levels of government that might even shut you down. Business insurance is necessary but also affordable if you do it right.
