5 Smart Ways Tech Businesses Can Save Money on General Liability Insurance
As a business owner, you’re probably used to shopping around before making major purchases. We don’t blame you. That’s one reason we set up our site to offer multiple quotes on insurance policies – it’s better when you can compare what’s out there.
But there’s more to saving money than comparison shopping. When it comes to buying a Commercial General Liability Insurance policy, there are four key strategies you can use to ensure that you’re getting the best possible price for the coverage you need.
General Liability Savings Tip 1: Shop Around
Okay, okay. We already mentioned this. But it’s important, so we’re saying it again: compare prices. Shop around. When you apply through TechInsurance, we’ll present you with quotes from a few carriers so you can see what’s out there.
As you compare policies, though, be sure you don’t just look at premium. The details of what’s covered and what’s excluded vary from one policy to the next and may explain why one’s significantly cheaper or more expensive. Before making a final decision, talk with your agent about whether a policy truly offers the protection your business requires. (For more on comparing quotes, see IT Business Owners: 6 Things to Look for in a General Liability Insurance Quote.)
General Liability Savings Tip 2: Avoid Claims
As with other types of small business insurance, making claims on a General Liability Insurance policy can cause your premiums to increase. We realize that this may seem frustrating or counter-intuitive: you get the coverage in case you need to make a claim, but if you do have to make a claim, you might end up paying more for coverage?
Well, sort of. But keep in mind that many of your contracts (including client contracts and commercial leases) will require you to have this policy regardless. So if you’re going to pay for it, you might as well pay as little as possible. The other thing to keep in mind is that you have some control over claims: managing risk day to day can greatly reduce your likelihood of needing to use your coverage (more about that in the next section). A simple example: when it’s wet outside, keep the floors mopped so people are less likely to slip and get hurt.
General Liability Savings Tip 3: Communicate with Your Clients!
General Liability Insurance can cover lawsuits over third-party injuries and property damage, as well as suits alleging libel or slander. But let’s think about that for a minute: for an incident to escalate into a lawsuit, things have to be pretty bad. Have you ever sued anyone? If so, what pushed you to file the legal paperwork?
The attorneys we’ve talked with about this have said one thing over and over: when someone’s suing, there’s an emotional component. Often, clients who sue feel that their needs haven’t been met or that they’ve been ignored.
You can prevent a lot of lawsuits by keeping lines of communication open. For example, if a client comes in on a rainy day, slips, and falls hard, make sure they’re okay. Offer to call an ambulance (your General Liability can likely cover that). Send them an email that night to check how they’re doing.
Small efforts like this – no matter what the incident – can go a long way toward promoting goodwill and preventing an expensive lawsuit.
General Liability Savings Tip 4: Choose a Higher Deductible
Not every General Liability Insurance policy has a deductible, but if yours does, increasing it may lower your premium. Keep in mind, though, that your deductible should never be more than you can comfortably afford to pay. If it’s more than you can pay, you won’t be able to enjoy the benefits of your General Liability coverage.
General Liability Savings Tip 5: Bundle Your Insurance!
If you’ve ever been offered a discount to buy cable and Internet together, you’re familiar with the concept of bundling. Business insurance also offers opportunities to save money by bundling multiple policies.
Specifically, you can bundle your Commercial General Liability Insurance with a Commercial Property policy into what’s called a Business Owner’s Policy (BOP).
It’s usually cheaper to buy a BOP than it would be to buy General Liability and Property Insurance separately. And while BOPs aren’t available to everyone (most carriers restrict it to smaller, lower-risk businesses), many small technology businesses qualify. If you’re not sure whether a BOP makes sense for you, be sure to bring this policy up with your agent.