Commercial insurance can protect various aspects of a business, including the owners and employees. Every business is different, so a business owner can select coverage based on their business’s industry and customize the insurance policy to suit their needs.
Saving on business insurance costs can be especially important during an economic depression, which is why we’ve compiled this commercial insurance guide to help you navigate and understand commercial insurance. Saving on commercial insurance in Missouri is possible when you work with us at David Pope Insurance Services, LLC.
Commercial insurance includes one or more types of insurance coverage that are designed to protect a business. The types of commercial insurance we offer at David Pope Insurance Services, LLC include:
Commercial insurance can protect the money and time you have invested in your business.
Reviewing the components of commercial insurance costs can help business owners in understanding commercial insurance. Factors for business insurance costs include the type of business you own, your industry, the number of employees, the business’s needs and types of contracts, the risks, your claims history and your business’s location.
The type of business you have may affect the costs of your commercial insurance. Large and small businesses should be covered by commercial insurance, including sole proprietors. A sole proprietor is responsible for the debts of the business. This means a sole proprietor’s personal assets, such as his or her property or bank accounts, may be targeted to satisfy the company’s outstanding debts.
The size of your business can also affect the costs of your commercial insurance coverage. The size of the building lot and the physical structure of a business can affect both your property insurance costs and general liability costs. Regardless of the type or size of your business, accidents are unavoidable. You can plan for the financial impact of potential accidents with commercial insurance.
Your industry can also affect the costs of your commercial insurance. The type of business you have can affect your risk profile. Businesses in the following industries can be covered by commercial insurance:
In higher-risk industries, such as construction, you may pay more than business owners in lower-risk industries.
Your commercial insurance costs may be impacted by your business’s number of employees. The costs for workers’ compensation insurance are dependent on the number of employees who are covered. The number of employees may also affect the costs for general liability coverage and errors and omissions coverage.
Basic coverage will cost less than more specialized coverage. You may want to include the following types of coverage in your commercial insurance policy:
Coverage types may also include professional liability and commercial auto coverage. The policy types you choose can affect the cost of commercial insurance. Insurance for employment practices liability tends to cost the most, while general liability insurance typically costs the least.
The types of contracts your business takes on is directly linked to your errors and omissions insurance. The cost of errors and omissions coverage is determined by the previous contracts and types of work your business has performed.
Consider the types of risks your business faces. Your business’s annual income can affect how much commercial insurance your business may need for adequate coverage. The more your business is worth, the more coverage you may want to obtain. This is because you may be sued for a higher amount if your business is worth more.
Your commercial insurance costs can also be affected by your claims history. If you have made a large number of claims in the past, you may pay more for commercial insurance. If you do not have a history of numerous claims, your commercial insurance may be more affordable.
Finally, the location or locations of your business may impact the cost of your commercial insurance. Your business’s location can affect your property’s value. Geographical risks, whether you offer services at locations owned by other people and local and state laws that regulate businesses in the area can affect your costs.
When you know the factors for commercial insurance costs, you can customize your policy to lower the cost. While you may think finding the cheapest commercial insurance is the best way to save money during an economic downturn, a better strategy is to find ways to lower costs without cutting coverage. You want the greatest amount of coverage for the best price.
Saving money in the short term is not worth the sacrifice of financial protection. Obtaining the right amount of coverage will ensure the well-being and protection of your business. Spending a little more money upfront can potentially save you more money in the long term if something should happen. If any incident occurs, you will spend much more money addressing it if you’re not covered.
To strategize for more commercial insurance savings, you first need to understand your current coverage. Commercial insurance can be quite similar to personal policies. You may find similar terms and conditions, including policy limits, deductibles, and coverages and exclusions.
Every type of coverage and policy will have limits on the amount of money that can be paid out in the event that a loss occurs. Policyholders usually have a limit per claim and a limit for the overall policy. Check your current policy’s limits per claim and overall limits. Understanding these limits can allow you to determine whether you have adequate coverage or if you should obtain more. You may find that you could operate with a smaller policy limit, which may allow you to decrease your coverage and assign the insurance savings to other types of policies
Another aspect of your coverage you want to understand is your deductible. While some commercial insurance policies do have deductibles, others do not. If your commercial liability insurance policy does have a deductible, you will need to pay the amount of your deductible before your insurance will cover the remainder of the claim.
Alternatively, you may be able to pay the claim in full and receive reimbursement from your insurance company for your deductible.
You can find what your policy covers by reviewing the first section of the policy that follows the insuring agreement. You should also find out what coverages are excluded from your policy. Exclusions are what your policy will not pay for or the conditions that will result in excluded coverage. If you intentionally harm another party, for instance, a liability policy will exclude coverage.
Knowing what coverages and exclusions you can expect can help you understand your commercial insurance policy and make wise adjustments moving forward.
One way to save money on commercial insurance in a depressed economy is to shop around for better policies. Prices for commercial insurance policies vary by company. While one insurance company may specialize in providing coverage to niche contractors, another may specialize in serving consultants. A regional carrier may also be able to offer a better price than a national insurance carrier.
When you take the time to shop around and explore your options, you may be able to find a lower price without having to sacrifice the coverage your business needs. Comparing commercial insurance policies is similar to choosing between airlines. Though many airlines can get you where you want to go, the amount they charge for the service will vary. You may be able to get the coverage you want from multiple providers, so consider all your options to find the best price.
Be wary of policies that are less expensive simply because they offer less coverage than other policies. Examine what each policy includes and what it excludes to ensure you are comparing prices on similar policies.
Another way you may be able to save money on your commercial insurance is by changing your deductible. Your insurance premium and deductible are inversely related. This means when your deductible is low, your premium is higher. On the other hand, when your deductible is higher, your premium is lower.
If you want to save money on your commercial insurance on a month-to-month basis, you may want to choose a policy with a higher deductible. If you do choose a plan with a higher deductible, ensure you will be able to pay this amount if you need to make a claim.
An insurance company may offer a package policy like a Business Owners Policy, which can help you save money on your commercial insurance coverage. You can usually pay a lower premium with a package policy than you would for several individual coverages. Think of a package policy as a restaurant buffet. The whole buffet comes with one price, regardless of whether you select each item, whereas ordering items off a menu means you pay for every item separately.
You may be able to save money by using a different payment option. Similar to an auto insurance policy, commercial insurance policyholders may be able to save money by paying their policy in full instead of in monthly installments.
To pay in a lump sum, you can set aside money regularly throughout the year. Paying this way can allow you to reduce your policy’s premium without sacrificing any of your coverage. Additionally, paying on time may help you save money. Nonpayment can result in a lapse in coverage and an increase in your rates.
Another way to save money on commercial insurance during an economic downturn is by bundling your policies. Insurance companies tend to offer a discount for customers who purchase multiple insurance policies, such as those for policyholders who obtain both home and auto insurance from the same provider.
Many businesses need more than a single commercial insurance policy for full protection, and a bundling package can help you take advantage of potential discounts. If you obtain both commercial property insurance and general liability insurance, for example, the insurance provider may allow you to bundle these policies, which will save your business money.
You may be able to reduce the costs of your commercial insurance coverage significantly by minimizing your risks and being safe. Follow each of your insurance company’s safety recommendations. You may want to create a risk management plan to provide your employees with a framework for a safe working environment and to enforce your business’s established safety rules.
If your business does not have a safety plan to minimize risks, you may need to pay higher premiums because of the greater risk of injury. You may also want to develop a disaster preparedness plan, which can protect your employees and property if a disaster occurs.
Consulting with an expert insurance agent can help you save on commercial insurance during an economic depression. An insurance expert knows how to navigate the many policy and coverage options based on what your business needs. If you are feeling unsure or overwhelmed, consulting with an expert can be incredibly helpful.
An expert in the field will know which carriers and coverages are the best fit for your business’s unique circumstances to save you money. When an agent compares quotes from multiple carriers, they can find the best price for you while ensuring your business has all the coverage it needs.
Are you a business owner worried about saving money during an economic downturn? Many people turn to David Pope Insurance for personal and commercial insurance in Missouri. We are dedicated to creating an affordable, comprehensive commercial insurance policy for each of our customers. Our commercial insurance policies help you protect the money and time you have invested in your company.
We are a family-owned company that can help you craft the right insurance plan for your business. We will go the extra mile to customize a commercial insurance policy with the coverages you need at an affordable rate, so you can protect your company and bottom line. To obtain the right commercial insurance plan to protect your business, contact us at David Pope Insurance or request a quote today.