Can Business Insurance Actually Save Your Business Money?
Many view business insurance as another kind of expense. Businesses have enough on their plate to worry about, so they dread the idea of getting insurance. It may be surprising to hear how getting coverage can actually save you money each year. Insurance allows you to reinvest more capital since you won’t have to have as much cash on hand to cover surprises out of pocket. You will learn that it can be written off on your taxes. Many business owner policies only cost between $500 and $800 a year. Virtually all policies cover things such as slip and falls since it is too easy for someone to fall in a icy and wet parking lot. Damage to your property on the premises is also covered. Being insured also makes it easier to get approved by a landlord to rent your space.
There are multiple methods for lowering your insurance. Most of this boils down to lowering your risks. It also depends on the method and frequency that you pay the premium. Knowing how to pick the right agent will make a big difference too. You’ll also be able to save money once you understand how your policy works and how to lower your premiums.
How Does it Work?: Insuring Your Business
Getting insured isn’t a complex process. There are only a few forms and procedures that are required. Many people are relieved once they see how many risks a typical policy covers. You’ll also learn of a few tips that will make your premiums less expensive.
If your firm is ever sued for libel, you will also be covered. General liability insurance will cover your tools, inventory, accidents, and lawsuits. Even damages related to your advertising can be covered. Key employees and business partners can also be covered.
There are many methods for lowering your insurance rates. At the same time, you will minimize your risks as an owner. Higher deductibles will lower your premiums since you are paying more out of pocket. Keep in line with your agent’s loss-prevention recommendations. This will lower your rates and the odds of an accident. If you show that you installed deadbolts and security cameras, there usually is a discount. Meet with your agent once a year. This ensures you are not overpaying and eliminates the odds of having a coverage gap. Ask if they have a “Claims free discount.” Carriers reward the clients that go long stretches of time without making a claim. That saves both parties money in the long run. Most independents work as a broker across many different companies, so you should look at them first. They can pick the policy with the most coverage at the lowest cost for you.
The Checklist – What You Need to Know About Business Insurance
Before you’re totally comfortable with getting insured. You will want to know the following.
- Write down everything that can be damaged. Take inventory of any stock, furniture, equipment, and employees that can be harmed. If you have employees, you will need workers compensation coverage in most states.
- Ask your agent if they specialize in business insurance for your type of industry. You should ask them about their years of experience as well.
- You should review the quotes. Ask about coverage limits. Some agents will offer too much or too little of liability coverage.
- Meet yearly to revise your policy so that it is current.
Now that you have the essentials, you’re ready to meet with your agent. Here is a list of common questions you can expect them to answer. Just give an agent a call and they will be glad to help you. If they don’t have good customer service, take it as a sign and find another.
Questions and Answers:
It is possible you still have a couple questions. Here are some common questions and with their answers for you.
Q: What Usually Impacts My Rates?
A: Your rates will be most affected by risk. For example, a company where people work in an air-conditioned office has a lower chance of accidents than one where people make things with machinery.
Q: How Do I Get Bundling Discounts?
A: A common way to get a discount is by bundling your business policy with home, life and auto policies.
Q: What Kind Of Lawsuits Are Covered?
A: Lawsuits that allege your company damaged someone’s property, reputation, body, product, or advertising injury like copyright infringement.
Q:What Fees Of The Lawsuit Will Be Covered?
A: Your court, lawyer and witness fees will be covered. The judgment or settlement against you will also be covered.
Q: What Is Key Person Insurance?
A: If something bad happens to an important employee, you will be compensated in the amount of loss this causes your business. This is pre planned within your policy.
Q: Do I Get A Discount For Paying In Full?
A: Yes, if you pay your premiums as a lump sum, most insurance companies give you a discount. Paying electronically can often get a discount too.
Q: Is My BOP Tax Deductible?
A: It is deductible in most cases since insurance is an ordinary and necessary expense for your business.