5 Ways To Save Money On Business Insurance

Feb. 13, 2012 - PRLog -- 1.   Exclude Terrorism Coverage
Terrorism coverage is automatically included in all policies but you can decline it.  Unless your business is close to a major airport or major metropolitan city there is no need to have this coverage.  Terrorism coverage will only cover specific acts of terrorism and the act will need to be declared as such by the Secretary of Treasury along with the Secretary of State and Attorney General (think 9/11).  If you are worried about the town mischief maker throwing rocks through your window, don’t worry, that type of act is covered under your liability insurance. You can expect to save anywhere from $60- $200 each year when you decline terrorism coverage.

2.   Bundle, Bundle, Bundle
If you are like most businesses, you not only need liability coverage but you also need worker’s compensation, commercial auto, professional liability and/or health & life coverages.  Make sure you bundle all of your insurance needs with one insurance company.  Most insurance companies will provide you with a discount for each type of insurance you include in your package.  You can also save money this way by including your personal auto, homeowners and health insurance with the same company as well.  Keeping all your insurance needs with one company will not only get you discounts, it will also help you keep organized since you’ll know exactly who to contact should you need to file any type of claim.  You can expect to get anywhere from 5% to 25% worth of discounts if you bundle.

3.   Pay In Full
In today’s economy it can be difficult to pay your insurance in full at the beginning of your term year.  If you are able to, however, paying in full can save you money since most insurance companies charge a processing fee with each payment.  If you make payments throughout the year, you can expect to save anywhere from $5 to $20 per payment when you pay in full from the start.  It’s also possible to receive a 5%-10% discount on your premium just for paying in full.

4.   Protect Your Property
Adding a central station fire & burglar alarm and/or sprinklers throughout your building can save you quite a bit on your business insurance.  Insurance companies love when you have these business protecting measures in place because if there is a fire or break-in, the alarm and sprinklers will ultimately keep you from having to file a larger claim.  You can expect to save anywhere from $50 to $200 a year when you have these in place.

5.   Increase Your Deductibles
If your deductible is only $250 per claim, consider increasing it to $500 or even $1000 per claim.  This will lower your yearly premium because your insurance company will assume you will absorb the cost of smaller claims and only file a claim when it would be worth it to you to pay the higher deductible.  It would be to your benefit to avoid sending in smaller claims anyway because there is a possibility your yearly premium could increase with the more claims you file.  You can expect to save anywhere from $50 to $250 a year when you increase your deductibles.

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Irwin Edelstein Associates, Inc. is a full service insurance agency committed to a high standard of excellence in all that we do and to establishing a firm relationship of mutual trust and service with each of our clients.