How to Lower Your Business Insurance Costs

Business insurance is a necessary expense, but you don't have to overpay. Smart business owners find ways to reduce premiums while maintaining adequate protection. The key is understanding what factors affect your rates and taking strategic steps to improve your risk profile in the eyes of insurance companies.

Bundle Your Policies

Bundling multiple policies is one of the easiest ways to save. Insurance companies reward customers who purchase more than one policy by offering multi-policy discounts of 10-25%. A Business Owner's Policy (BOP) already bundles general liability with property coverage at a discount. Add commercial auto or professional liability with the same carrier and save even more.

Increase Your Deductible

Increasing your deductible lowers your premium—sometimes significantly. If you can afford to pay $1,000 or $2,500 out of pocket for a claim instead of $500, your monthly premium drops. This strategy works best for businesses with some financial cushion and a good track record of few claims. Just make sure you can actually afford the deductible if something happens.

Maintain a Clean Claims History

Maintaining a clean claims history is crucial for keeping rates low. Every claim you file can increase your premiums at renewal. For small incidents that barely exceed your deductible, consider whether filing a claim is worth the potential rate increase. Implement safety protocols, train employees properly, and address hazards before they cause accidents.

Improve Your Risk Profile

Insurance companies reward businesses that minimize risks:

• Install security systems and fire alarms
• Implement formal safety training programs
• Maintain proper licenses and certifications
• Keep accurate financial records

Shop Around and Compare

Shop around and compare quotes—but don't just chase the cheapest price. Coverage varies between policies, and a cheap policy with major exclusions isn't a bargain. SmartInsured compares options from multiple A-rated carriers to find you the best combination of coverage and price. Get your free quote and see how much you could save.