Need To Buy Business Insurance? Money Saving Tips

When it's time to buy business insurance, it is important that you research as many options as possible and make your policy purchasing decision based on all available information. In order to help you better do this, here's a list of some money-saving tips that will allow you to significantly reduce the cost associated with business insurance policies:

Tip One - Hire a Business Insurance Consultant

Business insurance consultants can be invaluable when searching for affordable business insurance policies; not only are they well versed in the complexities associated with business insurance policies, they are usually quite familiar with many different business insurers. Therefore, they are a great source for business insurance policies that cost less and offer a better value in policy coverage.

Tip Two - Buy Only the Coverage You Need

When considering business insurance policy options, it is often easy to go overboard and purchase much more coverage than you actually need. When considering the types of policy coverage you require, be realistic in your expectations and needs. For example, if the actual replacement costs of all inventory of equipment used in your business is only $100,000, then do not purchase $1 million worth of coverage for the potential loss of this equipment and inventory. The additional coverage will not only cost you considerably more money, it may even be viewed with a great deal of skepticism by the insurance company, and may cause the insurance company to deny coverage or offer a policy.

Tip Three - Consider Higher Deductibles


Deductible amount requirements will directly affect the cost of almost any type of business insurance policy. The deductible is the amount of loss for which you, as the insured, are responsible for, before submitting any claims to the insurance company - to be considered for payment or reimbursement. Slightly adjusting, or increasing, required deductible amounts can often result in saving hundreds of dollars each year in insurance premiums. This is another area where a business insurance consultant could be of particular use to many small-business owners, as they can help evaluate and explain the way different actual deductible amounts affect the cost of your insurance premiums.

Tip Four - Comparison Shopping


Depending on your location, and the type of business you're involved with, there could be many different business insurers competing for business in your particular market. If there are, you can usually save a lot of money by comparing policy prices from four or five different insurers. In fact, if you let insurers know that you are comparison shopping - they will probably be more likely to offer you their best rates for coverage. If nothing else, they won't try to inflate their quoted policy prices.

Tip Five - Ask Your Local Chamber of Commerce

If you're a member, your local Chamber of Commerce can be an invaluable source in locating affordable business insurance. In fact, they may even offer enrollment and membership into a group-based plan that can save you considerable amounts of money over purchasing business insurance on your own. These types of plans are usually referred to as Group Purchasing Agreements, or GPAs. In short, they allow you to take advantage of business insurance rates negotiated for a large group or association of businesses.

In conclusion, there are many ways to save money on business insurance policies; they just require research and some perseverance. But, with little patience and investigative, skill affordable business insurance policies are not only possible - they are attainable.

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