A solid business insurance policy is one of the most important ways you can manage risk as a small business owner. However, costly premiums add to the operational overhead and make it more difficult to turn a profit, so many business people forgo long-term protection in favor of immediate savings. However, there are ways you can reduce the costs of coverage so you can better afford to protect yourself.

5 Ways to Reduce the Cost of Business Insurance

1. Raise Your Deductibles

The deductible is the amount you must pay toward a claim before the insurer must start to contribute. The lower your deductibles, the less you will be out-of-pocket in the event of a claim, and therefore the more you must pay in monthly premiums. You can reduce monthly costs by raising the deductible and agreeing to pay more out-of-pocket if you must ever file a claim.

2. Drop Unnecessary Coverage

If circumstances have changed since you originally designed the policy, you can often reduce your payment amounts by dropping coverage you no longer need. For instance, if your property insurance covers a storage shed or outbuilding you have since removed or no longer use, ask your agent to drop it from coverage and see how much you'd save each month.

3. Add Security Systems

You can lower costs by lowering risks for your insurer. For instance, by adding a security or fire-prevention system to your business premises, you lower the chances you'll file a fire damage or theft claim. Your insurance carrier should transfer the savings on to you.

4. Consider a Business Owners Policy (BOP)

A business owners policy bundles liability and property insurance into a single package. By bundling coverage like this with a single insurer, you can often qualify for lower rates than you'd pay when buying them separately.

5. Shop Around

Not all insurance companies charge the same amount for the same coverage, and their pricing algorithms tend to vary, as well. Before settling on a policy, get quotes from multiple carriers and choose the one that offers the best value.

To see if you can reduce your business insurance costs, contact Integrity Insurance Solutions in San Marcos, TX. They serve clients in the Hays County area, offering impeccable customer service and invaluable guidance designing the right insurance policy. They have an A+ rating with the Better Business Bureau® and specialize in business, auto, home, and liability insurance. Visit their website to view location details or call (512) 396-2211 to request a quote.