Slash Your Insurance Premiums And Expand Your Coverage

When you are self-employed, everything falls on you. If you don’t take steps to protect your business, who will? When selecting a business insurance company, there are several things you should look at that will maximize your coverage while minimizing the premiums that you will have to pay.

Look for Associations That Provide Group Rates

If you want to keep your insurance rates down, belong to an association that allows for you to purchase group rates. There are multiple associations, so explore several until you find one that has the lowest rate.

Consider a Business Owner’s Insurance Policy

Rather than purchasing all of your insurance separately, consider purchasing it together under a business owner’s insurance policy. Purchasing multiple policies bundled together will usually result in lower premiums. However, when you are purchasing this type of policy, make sure that you do not have unique risks that might not be covered under the policy. You might need to purchase extra coverage on top of your bundle. You might want to insure key people within your company or have the flexibility to modify your insurance as your business changes.

Another benefit of bundling your insurance policy together is that you are less likely to have insurance coverage that overlaps. If you purchase multiple policies and two cover the same thing, you are paying more than you have to.

Reduce Your Risk

The best way to save money is to avoid risk in the first place. Reducing your risk of a break-in, fire, employee injury, or any number of other losses will help keep your premiums down as well. Make sure that you have a cash reserve so that you do not run into cash flow prolems, for example.

Form a Relationship With Your Insurance Broker

Do not treat the insurance representative as an adversary. Explain all of the risk that your business faces so that the insurance company can make sure that it provides you with an appropriate amount of coverage. Your insurance representative, based on his or her knowledge of your industry, may be aware of risks that you many not have even thought of. Brokers are usually the most trustworthy because they do not work for a single insurance company.

Choose an Admitted Insurance Company

You will want to make sure that the insurance company that you choose is an admitted insurance company. This means that it will have a solvency fund that will cover you in the event that the insurance company goes under. Also, in Canada, many provinces do not regulate non-admitted insurance companies as much.