How to find cheap small business insurance
It’s not as difficult as you might think to find affordable small business insurance. From comparison shopping to bundling policies, learn how you can save money and still protect your IT business.
How can I get affordable small business insurance?
When you’re buying insurance, choosing the cheapest business insurance policy isn’t always the best solution.
Cheap commercial insurance could leave your business unprotected if you're sued. You’ll need to determine your risks and find the policy that’s right for you, so it doesn’t end up costing you more in the long run.
Luckily, there are several steps you can take to lower costs and still protect your business.
1. Comparison shop
Not all rates and services are the same, so it’s essential to shop around to find the best policy to meet your IT business’s needs.
However, as you compare policies, make sure you don’t just look at premiums.
The details of what’s covered and what’s excluded vary from one policy to the next. Those details can explain why one policy is significantly cheaper or more expensive than another.
Before making a final decision, talk with your TechInsurance agent about whether a policy truly offers the protection your business requires. Your agent can help you compare prices, review coverage terms, and find an affordable plan that still protects your business.
2. Bundle your policies
Most insurers will give you a discount if you purchase more than one policy. Bundling policies can help keep your costs down.
For example, it’s common to bundle general liability insurance with commercial property insurance in a business owner’s policy (BOP). It’s typically 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 small, low-risk businesses), many small tech companies qualify.
If you’re not sure which bundles make sense for your business, ask your agent for advice.
3. Choose a higher deductible
Not every commercial insurance policy has a deductible, but if yours does, increasing it may lower your premium.
Keep in mind, however, that your deductible should never be more than you can comfortably afford to pay. Cheap business insurance with a high deductible won't offer any benefits if you can't pay the deductible first.
4. Choose lower limits
Insurance policies with higher limits cost more, but also provide greater protection. The trick is choosing limits that match your risk. For example, the limits on your commercial property insurance should match the value of the business property that you wish to insure.
Most policies have two limits. The per occurrence limit is the maximum amount your insurer will pay on a single claim, while the aggregate limit is the maximum amount your insurer will pay during the policy period (typically one year).
5. Manage your risks
Unfortunately, making claims on your insurance policy can cause your premiums to increase.
The reason is simple: If insurance companies determine that your business is a high risk, they may choose to charge you more.
The good news is that you can take steps to reduce your likelihood of claims. Managing day-to-day risks can greatly reduce the chances you'll need to use your coverage.
For example, when it’s wet outside, keep the floors mopped so people are less likely to slip and get hurt.
There are many steps you can take to reduce risks, from installing security cameras to removing tripping hazards. You can even manage your errors and omissions exposure through methods like effective communication with clients.
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