Businesses in the modern world are always looking for ways to save money and cut costs. This is whether looking for a road risks policy for several vehicles or combining premises insurance with protection. One area where many businesses struggle is typically with insurance costs.
Here are five tips to help businesses reduce their insurance bills and keep more money to reinvest in their business or to pay out in bonuses.
Review Your Coverage Regularly
One of the best ways to save money on insurance is to review your coverage regularly. Your business needs may change over time, and it’s important to make sure that your insurance policy reflects those changes. Otherwise, you could be paying for coverage that you no longer need.
Check for things like cover that is duplicated as well as insuring for too high a sum. Duplication can happen with breakdown cover. To also be covered for breakdowns outside of accidents, we can end up being covered by two different providers.
Consider Combined Insurance Policies
Another way to save money on insurance is to combine multiple policies into one. For example, motor trade insurance can be combined with other types of business insurance to get a discounted rate. This can be a great way to reduce your overall costs. Insuring more than one vehicle under the same policy number is a great way to ensure a discount. Many commercial insurances will incorporate different areas of insurance to provide overall business protection, helping your business in the long run.
Increase Your Excess
If you’re willing to pay out more of a business’s funds in the event of a claim, you can often get a lower premium. This is because you’re taking on more of the risk, and the insurance company will reward you with a lower rate.
Excesses are considered a way of having the insured take greater care when driving and conducting work. If we have to pay ourselves, we are going to think about our actions more. This can have the result of reducing the number of claims that come an insurer’s way.
When it’s time to renew your policy, don’t just automatically accept the renewal quote from your current insurer. Shop around and compare rates from other companies. You may be surprised at how much you can save by switching to a new insurer.
In terms of shopping around, here are some tips:
- Look online.
- Check for specialist insurers.
- Study your cover and see if it is excessive for your needs.
- Look for opportunities to combine insurance.
Take Advantage of Discounts
Many insurers offer discounts for things like a good claims history and installing security devices. Be sure to ask about any available discounts so that you can take advantage of them and lower your costs.
Young drivers will cost a business more, so they need to prove their worth. Drivers with penalty points on their licences will represent a concern for insurers and so adversely affect the premium. You will want as many suitable workers as possible to add on to the road risks part of your insurance policy in terms of flexibility. This is useful when cars are being collected or being delivered back to customers.
By following these tips, you can save money on your business insurance and keep more cash in your business account. Reviewing your coverage frequently, combining policies, and taking advantage of discounts can all help to reduce your costs. Businesses only tend to survive when they keep a close eye on expenses and find ways to reduce them. Insurance is one of the areas that can be looked at in terms of making some of the greatest savings.
Keep these tips in mind and you’ll be on your way to saving money on your business insurance.