Startups are often tight on cash and want to keep their overhead as low as possible. They also, however, need adequate insurance to protect them. If you’re starting a new business in Natick, here are three ways you can save money on a business owners policy.
Natick Startups Can Save on a Business Owners Policy with These 3 Tips
1. Look for a Business Owners Policy with High Deductibles
On most insurance policies, increasing deductibles will reduce the policy’s premiums. This is generally true whether buying a personal auto insurance policy for yourself or several business insurance policies for your company.
When increasing deductibles, your business is assuming more risk. Should you have to file a claim, your business will need to absorb a little more of the losses than it would have if the policy’s deductibles were lower.
In return for assuming a little more risk, the insurer will usually reward you with lower premiums. Sometimes, the reduction in premiums is significant. Other times, it’s negligible. To find out just how much your startup could save, you’ll need to work with an agent who can get quotes with different deductible levels.
2. Take Specific Loss-Prevention Actions
Insurance companies will also frequently reward you for taking loss-prevention actions. Unlike increasing your deductibles, these actions don’t increase your business’ exposure to risk. They actually reduce it, which is why your insurer may give you a discount for taking these actions.
Loss-prevention actions are simply actions that reduce the likelihood that your business will suffer a loss. In this case, insurers are specifically interested in losses related to insurance claims. The particular actions you can take to reduce how much you pay for a business owners policy will depend on your insurance company. Most insurers list the specific loss-prevention actions that they offer discounts for. Some examples might include:
Installing a monitored security system
Developing safety protocols
Deciding to work with only insured vendors
An agent serving Natick can help you find out what actions will qualify your company for a discount and how much the discount will be. With this information, you’ll be able to decide whether it’s financially worth making the investments needed to qualify for these reductions. Often, it is.
3. Work with an Independent Agent in Natick
To make sure you take full advantage of the above rate-reduction opportunities, you’ll need to talk with an insurance agent. You shouldn’t just contact any agent, though. Look for an independent agent. Unlike agents that work for specific carriers, independent agents are able to compare policies from all of the insurance companies that offer business owners policies in Natick. Only independent agents, therefore, are able to find you the business owners policy that will give you the biggest discounts possible regardless of what company is offering the policy.