When starting a new business, there is no question of whether or not you need coverage. A brand new business is vulnerable to a mountain of liability and protecting your life savings, your dream, and your passion is not debatable. Every entrepreneur needs some form of small business insurance, but most new CEO’s are working to pinch pennies, stretch every dollar, and get their business of the ground.
At the end of the day, there is generally not a lot left in the budget for a large insurance policy. Therefore, the real issue is finding affordable insurance with great coverage. These tips can help you find cheap business insurance without sacrificing much-needed coverage.
Reduce your Risk
Some businesses are inherently more risky than others. If you’re opening a law firm, a medical office, or a skydiving school, your insurance will be more expensive than if you’re opening a clothing boutique. However, any business may be eligible for discounts by installing safety features such as sprinkler systems, fire alarms, smoke detectors or intrusion alert security systems.
Raise the Deductible
A deductible is the amount you will be responsible to pay before the insurer will make payments on a claim. As with all insurance policies, the higher the deductible on your business coverage, the lower your monthly payment. To decide the best deductible, determine an amount that you could pay without causing permanent monetary damage to the business.
Average out the costs of paying a higher premium every month compared with a large deductible every once in a while. Raising the deductible and sticking with a cheap monthly premium usually saves business owners money in the long run.
Shop Around and Around and Around
Whether you’re talking about auto, home or business insurance, coverage rates and premiums can vary widely from company to company. Start an extensive search by finding several brokers or agencies in your area that specialize in business coverage. Speak candidly with each agent about your needs and your budget and find the one that can offer you the best of both worlds.
Business Owners Policy
A Business Owners Policy (BOP) is usually the cheapest business insurance available. A BOPs is a standard policy which includes standard coverage. Additional rides may be purchased for special needs or additional coverage, but a BOP is a great place to start with inexpensive general coverage.
Grow Into Your Policy
A BOP is a great way to start with insurance coverage for any small business. As your business grows, keep your insurance agent in the loop to ensure that your coverage is always adequate and never over-reaching. Your insurance needs may be less than you realize, and an informed agent can help you make the best decisions as your business grows.
Anytime you add employees, expand your business, increase inventory or materials or purchase major equipment such as tools or vehicles your insurance agent should be informed so your coverage can be altered as necessary.