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How Can You Get Lower Rates on Small Business Liability Insurance?

By incorporating some of these practices, your business may be able to reduce its Errors and Omissions cost, General Liability Insurance premiums, or the cost of other policies.

  • Supply training manuals and other best-practices documentation to your insurance agent. You may qualify to reduce your Worker's Comp or Errors and Omissions costs by demonstrating to your insurance company that you follow safety protocol, use contracts with your clients, train your employees, or use other recommended practices.
  • Use strong contracts. Insurance companies may offer E&O for less to businesses that use strong contracts with their clients. Limiting your liability exposure and taking some of the other steps outlined above will reduce the cost and likelihood of a potential lawsuit, which may help you qualify for a lower premium.
  • Have a clean insurance record. If you have a history of General Liability or other claims, your business may have to pay more for its insurance. Maintaining strong relationships with clients, customers, and business partners can help prevent lawsuits now and prevent higher premiums in the future.
  • Join state safety programs. You might be able to lower your Workers' Comp costs by participating in certain safety-training programs that your state runs.
  • Help employees get back to work as soon as possible. The longer an injured employee is unable to work, the higher your Workers' Comp premiums will be in the long run. If an employee is injured, talk with them about returning to work in a modified or part-time role. An IT technician with a broken leg may not be able to work on in clients' offices, but they may be able to stay in your office in a support role.
  • Classify your employees according to their responsibilities. When you apply for Workers' Comp, you'll list out your employees. When you do so, don't make the mistake of listing them all as "IT employees" if some of them are support staff or have other roles. A secretary or clerical worker may have lower risks than someone who installs IT equipment. Listing them properly may help your business get lower rates.

Next: What Factors Affect the Cost of Business Insurance?

70% of businesses raise prices or cut hiring when sued