For many small business owners, purchasing insurance often falls into the category of luxury. Unlike large corporations, small business owners must weigh the risk of litigation versus the dent a monthly premium will put into their capital. However, some risks, such as the potential for a liability lawsuit, are either compulsory or so damaging that they cannot be ignored. Nevertheless, as a high insurance premium can be just as damaging to your small business, it is important to find a public liability policy that is both inexpensive and yet still provides the coverage you require.
Cheap Coverage Versus Efficient Coverage
Many small business owners make the mistake of simply purchasing the cheapest insurance plan available. The problem with such a strategy is the cheapest plans generally have the most exclusions. Meaning, they may not provide the cover you need if and when an accident occurs. In fact, many insurers get away with charging extremely low premiums simply by excluding factors that represent the most common risk.
On the other hand, not all exclusions are applicable to your business type. Therefore the key to finding cheap but comprehensive insurance is to find a company that is flexible to your individual needs, or finding a coverage whose exclusions represent low risk areas for your business.
Shop Online Using Comparison Sites
Given the number of available insurance providers and the specific needs of your business, it may be difficult to find the time to research the litany of companies for prices and cover. An online comparison does the heavy lifting on your behalf by researching all the applicable insurance providers and sorting them by a variety of factors including price, coverage type, location, and customer rating. Many of these comparison sites will allow you to purchase a plan or contact an agent directly from their webpage.
With online comparison sites, you only need to enter in your information once, which then can be transferred to the insurer you select.
Safety and Training
Depending on the type of business you run, you may be able to negotiate a lower rate by holding regular safety and training courses. This can apply to working with equipment or hot beverages around customers or making sure to place signs to indicate wet spots or loose carpeting. Think of ways to lower your risk and talk with your insurance agent as to whether they can help lower your premium.
Build a Reputation
Ultimately, safety training and preparation means little without a track record. For new businesses, this must be built over time. For older businesses, you can rely on the records you have kept regarding previous claims. By demonstrating a history of safety in comparison to similar businesses, your insurance company may agree to lower your premium.
Remember, most policies are created based on statistical data taken from your industry as a whole, and may not be applicable to your business. Talk to an agent regarding the highest risk factors for your business, and inform them what steps you have taken to mitigate that risk. Having a historical record or safety training certificates to back up that claim may help persuade the agent to make an exception on your behalf.