Cheap business insurance

You already research and compare before spending money on items you need for your business. The same goes for insurance.

Insurance carriers offer different types of coverage options at a wide range of prices. So, what are the best ways to shop for commercial insurance?

You could reach out to insurance companies directly and ask for quotes on the policies you’re interested in. Thankfully, there’s an easier method.

Instead, you can contact an insurance agent or broker to get quotes from several business insurance companies. Just make sure the insurance agency or brokerage represents multiple companies since some work with one exclusively.

They’ll navigate the industry to find affordable business insurance that meets your needs. And they’ll find appropriate options for rates and coverage from different carriers. Plus, you can ask them to make sure your policies provide the coverage you need to fulfill contracts, meet legal requirements, or reduce risks common to your profession.

Factors that influence business insurance costs include:

• Your industry and risks
• Number of employees
• Policy limits and deductibles
• Location
• Business income
• Business type (i.e., sole proprietor, LLC, etc.)

Insurance companies often give discounts when you buy more than one policy. Here are two of the most popular bundles:

Small business owners can often bundle two common types of coverage in a business owner's policy (BOP) for a discount:

General liability insurance is often the first policy purchased by a small business. It protects against costs related to everyday customer accidents, such as slip-and-fall injuries.

Commercial property insurance covers costly repairs or replacement of business property and equipment. It can help your business recover quickly after a fire, storm, or burglary.

Tech companies can often combine two important types of liability coverage in a bundle called technology errors and omissions insurance, or tech E&O. This policy includes the following protection:

Cyber insurance helps companies recover from cyberattacks and data breaches. It can also cover legal fees if your business is sued for failing to prevent a cyberattack or data breach.

Errors and omissions insurance helps protect against lawsuits from dissatisfied clients. It can also cover the resulting legal expenses if you miss a deadline or make a mistake in your work. This policy is called professional liability insurance in some professions.

Commercial insurance policies aren’t one size fits all. Your coverage should meet all aspects of your business needs but not exceed it.

For example, when purchasing business property insurance, your coverage limits should match the value of your business equipment. If that amount changes, you’ll need to change your policy too.

Some companies may choose to purchase inland marine insurance, which protects business equipment while in transit or stored off site, but for others, it may not be needed.

You can also choose to add business interruption insurance to cover expenses related to forced closure.

Commercial umbrella insurance is a good way to save money and extend liability coverage limits if you’re concerned about escalating legal costs.

Workers' compensation insurance is required in almost every state if you have employees. This policy helps pay for medical expenses if an employee or yourself gets injured. Policyholders may be able to save money on their workers' comp with a pay-as-you-go policy or ghost policy.

In addition to workers' comp, some businesses may consider employment practices liability insurance (EPLI), which provides protection when a worker sues over employment-related issues.

An agent can prevent you from paying for coverage you’ll never use. Here are a few variables to keep in mind:

Deductible. A high deductible can make your insurance premium more affordable. But you’ll have to pay more before you can collect insurance benefits.

Policy limits. A policy limit is the amount your insurer will pay on claims. A lower limit usually means a cheaper premium, but it also means less coverage. Ask your agent how much is enough for you.

Inclusions and exclusions. Inclusions are the events a policy covers, and exclusions are the ones it doesn't. Cheap insurance isn't a good deal if common risks aren't covered.

Actual cash value versus replacement value. You can insure your business property for its actual cash value (depreciated value) to save money. Or you can insure it for the replacement value if you want to be able to purchase a new item after a loss.

Insurance providers may charge more if they think you run a high-risk operation. The good news? You may qualify for cheaper business insurance if you address trouble spots.

Here are a few risk management strategies for small businesses.

Many insurance companies offer a discount on commercial property insurance for businesses that invest in a central burglar alarm or sprinkler system.

Insurance carriers are particular about what qualifies for a premium reduction. Check first to make sure your upgrade will count for a cheaper policy.

An easy way small business owners can reduce the risks of errors and omissions insurance lawsuits is keeping in regular contact with customers.

Make sure you communicate often and honestly with your clients to resolve issues before they turn into a lawsuit. If everyone’s on the same page, you’re much less likely to end up in court.

Learn more ways to save money on errors and omissions insurance.

Implementing safety practices at your business can reduce the chance of general liability claims and workers’ compensation insurance claims. To reduce the chance of visitor and employee injuries:

• Clean spills immediately
• Keep walkways clear of clutter
• Add lighting to dark areas
• Install handrails on stairs
• Remove loose rugs and other tripping hazards

With effective risk management, you can reduce your chances of financial losses. Plus, fewer accidents save your business money even beyond lower insurance costs.