Business insurance is a significant cost to any business, particularly so to small businesses. Small business insurance premiums are particularly high as they are seen as higher risk operations, and in fact usually go up by very high percentages as well.
In order not to go into debt simply keeping your small business covered by insurance, take these steps to reduce your business insurance rates by a significant amount.
Trim the fat: If the cost of business insurance is running too high to be affordable, go through your coverage and opt-out of some of the more unlikely scenarios. If you were, for instance, a freelance financial consultant working from home, you would definitely want the errors and omissions insurance, but perhaps you can forego business interruption insurance. If you are selling a product, you will need product liability insurance, and everyone should have disability insurance. Also see where you can save in the long run, for example if you opt to pay a higher deductible that may lower your insurance rates.
Buy in bulk: Join up with professional or business organizations to avail of group rates for business insurance. There are specific professional organizations for most kinds of businesses such as IT, finance, etc. There may also be a home-based business organization you can join if you work out of your home. Additionally, generic groups, such as the Chamber of Commerce and the Better Business Bureau offer discounted rates on insurance to their membership. You might have to pay a membership fee but these will probably be offset by the better insurance rate. Membership may have the added advantage that will extend to bulk-rate buying for other business essentials, and provide a networking platform for your small business.
Invest in security: By making your business more secure you could reduce your liability and subsequently your insurance premiums. Again, one-time costs such as installing security system, or updating older vehicles, will be offset in the long-term by lower insurance rates.
Move to a lower insurance neighborhood: Rates of business insurance vary in different areas of the city. Depending on the type of business you run and whether you can relocate it, you could look into the rates in different zones. If you are home-based this will of course not apply to you. However, you might be able to find a deal where home and business insurance is offered in a combined package, which might come at a better price than the two sold separately.
Take the time for some comparison shopping: Insurance rates quoted by different companies vary significantly. Make sure you shop around and find out what standard rates are on offer from different organizations, and in different neighborhoods. Then approach a few different insurance agents and see what rates they quote you. Enterprise Insurance Group will give you quotes from over 100 of the top National, Regional, and Specialty insurance carriers. With Enterprise you only have to shop in one place.
Insurance rates are expensive and will always seem so, but insurance for a small business is indispensable, as they provide a much-needed measure of protection against unforeseeable eventualities. So do your research, make some tough decisions, get the best rate you can, and get protected.