Every business owner is naked to risks at the start of any calendar or business year. These risks, internal or external, can be a threat to business sustainability and achieving set goals. The stakes could arise from regional or global economic events, accidents, damages, natural disasters or liabilities.
The question you are seeking an answer to is, how best do you mitigate some of these risks to avoid financial loss, bankruptcy, poor business reputation and, in some instances, closure?
Well, our short answer is insurance. (Okay, hear me out)
Asides from country-regulated or must-have insurance policies for businesses and their employees, e.g., employee workman’s compensation insurance, group life Insurance, and Health Insurance, other insurance policies are advisable for businesses.
Before we dive into ways you can save on insurance as a business this year, let us look at the major challenges businesses face when finding the right insurance policy fit.
Challenges Businesses Face in Search of The Right Insurance Policy
Finding the Right Insurance for your Company:
A company’s insurance need depends on varying factors such as the assets, size, type, location, and the specific sector your business falls. Insurance brokers and agents help to alleviate the burden of making this decision.
Finding a Trusted Advisor:
A bad insurance advisor or broker will incur more expenses and neglect insurance covers your company’s needs. You need to receive valuable advice and proactive decisions that help save on your insurance to address your insurance needs. Your broker has to be your trusted advisor.
Delivering Customized Employee Benefits:
Employee benefits offerings should be attractive to retain and attract new employees; an example is health insurance. The company should be aware of current policies in compliance and health care reforms.
Search for Affordable Premiums
Businesses continually look for the best way to reduce costs and save on insurance premiums. Paying lesser premiums can lead to inadequate insurance coverage. It’s best to reach out to a broker or agent in search of a fit insurance company.
Money stands as an important factor for every company. A company’s primary aim is to increase profit and reduce costs. How best do you save on insurance as a Business this year?
Ways to Save on Insurance as a Business this Year
Seek the Expertise of a Broker or Agent
Knowledge of different insurance coverage is crucial for every business, but more important is the expertise of a broker or agent. Consult a broker with in-depth knowledge of your sector, significant coverage premiums, best deductibles, and Insurance savings on businesses.
Do the Research and Compare Quotes.
It is advisable to do this annually to save on insurance. Insurance companies each give different quotes based on risk evaluation. Compare these quotes and understand the services they render. You can also talk to Insurance brokers with a wide range of quotes that suit your need.
Confirm the Insurance Coverage your Business Needs
Although it is more expensive to underinsure your company, it is also key to avoid spending on unnecessary insurance coverage. Being definite about the exact coverages will promote insurance savings for businesses.
Purchase a Bundled Policy
An example of a bundled policy is a Business Owner Policy. A Business Owner Policy combines different coverage into a single plan for a reduced cost. However, Business Owners Policy doesn’t include Auto Insurance, Professional Liability Insurance, or Worker’s compensation.
Some carriers also offer discounts on other add-on policies or when you buy multiple coverages. To help save on insurance, you could speak to an agent or broker when confused about the bundles to purchase.
Increase your Deductible
A deductible is the amount of money the insured covers for an insured loss. It is the risk-sharing between you, the policyholder and your insurer.
An excellent way to lower your Premium is to increase your deductible. But note the deductible has to be paid before the insurance company pays a claim. So it would help if you spoke with a broker or agent before making such a decision.
Pay the Premium in Total Upfront.
Some Insurance providers give some percentage discounts when a lump sum payment is made Upfront. This helps save on insurance as a business. Instead of paying in instalments, save on insurance by paying just once.
In conclusion, the best time to take action was yesterday, and the next best time was today. Looking to save on your business insurance needs this year? Schedule a meeting here to learn how to leverage our Digital Brokerage platform for savings on your business insurance needs.