Business owners are always trying to improve their bottom line, and finding methods to lower insurance rates for a business often tops the list of ways they go about it.
If you’re interested in paying as little as possible for your commercial insurance, there are a few key ways you can lower insurance rates for your business…
Be Less Successful. If you want to pay less for insurance, you can always make less money. One facet examined by carriers is gross annual income; if this is low, you won’t have to worry much about insurance. It may seem unfair, but if you start making more money, you’ll likely pay higher insurance rates.
Don’t Expand. Keeping an operation small keeps your costs low. If you have fewer employees–or none–you don’t have the cost of paying for insurance to cover their medical expenses in case of a work-related injury or illness, and you’ll get to enjoy doing all of the work yourself, for the life of your business, to boot.
Limit Your Options. It’s simple; clients and venues often require insurance in what may seem like high amounts; if you limit your clientele and partners to those on the small side, you can prevent having to carry larger amounts of commercial insurance, thereby lowering your insurance rates. You also don’t have to invest in higher numbers of inventory, or manpower hours, or whatever your particular business model needs as capital, if you’re shooting low.
You’ve probably figured out by now that our “suggestions” are tongue-in-cheek. However, they’re still very valid ways you can lower your insurance rates for your business because the truth is that you need insurance if you run a business, and the deeper truth is that if you want to experience real success–growth, and the benefits that come with it–you also experience the cost of that.
Author and speaker David Hyatt says that “success brings its own set of problems”, and he’s right–that truth is particularly relevant to your business insurance.
Now, let’s look at the reasons why you should celebrate the fact that you need insurance for your business–and why you need it in the amount that will help your business thrive.
Insurance Protects Your Present. Whatever your scale of operations now, if an event happens that incurs legal costs, they have to come from somewhere. It can be a payout from a robust General Liability policy, or it could be the proceeds from shutting your business down and selling it…and possibly going into debt if that’s not enough to cover incurred obligations. You may be the best in your industry, or have a product like no other, but accidents happen, and even if you’re not at fault, court costs money.
Insurance Helps Build Your Future. Having enough to cover your assets in case of accidents or negligence is important, but when you expand, so does your risk. Want those choice clients? The big venues? They likely require a little more from you in the way of insurance coverage. Even if they don’t, and you’re taking on more by doing more, the possibility of happenings that outstrip basic, bare-bones coverage increases. An Umbrella Policy to raise limits, or Workers Compensation to protect employees may give you the safeguards you need to step forward.
Risk management is an art, and our business at CommercialInsurance.net is helping you protect your business.
So that you can grow, not just enjoy the status quo.
Call 1-877-907-5267 today to speak with one of our specialists, or click below to start the process of getting a quick, free quote.