No one wants to pay more than necessary for their California business insurance, so it’s important you explore all your options. These tips can help you reduce your California insurance premiums, while staying well-protected.
Use an Independent Agent
Business owners have better things to do with their time than searching for the best insurance for their company. Besides, finding appropriate coverage at an affordable price requires expertise.
Using an independent insurance agent makes sense for many reasons. First, they know the industry and have access to many products. They may find a carrier that specializes in your industry that provides the precise coverage you need.
Second, they work for you and not the insurance companies. Third, they do the legwork and compare prices and coverage to find you the best possible coverage at the most reasonable cost.
Finally, they tailor your coverage to your needs so you don’t pay for frills you won’t use and focus your insurance dollars where they’re needed most. They’ll ensure you have sufficient coverage and receive the discounts you deserve.
Insurers offer rates based on many factors. These include the carrier, your business type and industry, where you operate, and the likelihood of incidents. When you reduce of incidents, you can often enjoy more favorable premiums.
Common ways to reduce risk include business safety improvements. These may be simple and inexpensive, such as switching to rubber mats or adding a guardrail in a dangerous area.
More costly items such as a sprinkler or security system are easy to justify in your budget when you recoup your investment through substantially reduced premiums. As items reach the end of their useful life, you may also be able to tap into previously unavailable discounts by buying particular products.
A thorough risk management review including you exposure to cybercrime and a good safety training program are also an excellent way to prevent losses and minimize risk. Fewer incidents can lead to an improved EMR and lower premiums.
Unintentional employee misclassifications can lead to unnecessarily high premiums if you choose a category more likely to experience injuries or illness. Intentional misclassification can lead to heavy fines and legal action and you may not have coverage when you need it most.
Talk to your broker about any personnel changes as soon as possible. If you’re unsure of how to classify an employee, your broker can provide a reliable answer.
Pay Your Full Premium
Paying insurance premiums in installments may be convenient, but it also more costly. You’re charged a fee much like when you take out a loan. The cost of insurance is part of doing business, so it makes sense to budget for the expense annually and to pay your full premium.
Bundle Your Policies
Bundling your existing general liability, commercial property, commercial auto, and income insurance premiums into a Business Owner’s Policy can often lead to lower premiums than buying these policies separately.
Work with an insurance professional to avoid coverage duplication and insurance gaps. Some businesses require insurance riders or additional coverage a BOP can’t provide.
Re-Examine Your Deductible
When you increase your deductible, you lower your premiums. However, this isn’t something you should do without discussing the implications with your broker.
If you operate a large business with plenty of cash flow, this might not be an issue. If you operate a smaller business with tight margins, this may not be a viable option as it could be too much burden for your company to bear.
Access Professional Groups
Many professional groups offer insurance discounts or group rates to their members. Many medical, veteran, business, rotary, and union organizations offer perks your business could enjoy, and insurance benefits. Your independent agent may have insider knowledge of organizations that might suit your industry and company.
Annual Insurance Review
Automatically renewing your policies and carrying on with payments isn’t in your best interests. An annual review ensures your insurance always reflects the current state of your business and uncovers any applicable discounts.
Your agent will want to know about any changes to your business model and your business growth. They’ll adjust your insurance accordingly so you pay for what you need, avoid duplication, and protect your business well.